The Future of Consumer AI
October 2024
Consumer AI is about to change everything. Like the internet and mobile phones before it, AI will soon be a part of our everyday lives. But unlike those earlier shifts, AI isn’t just about new gadgets or software, it’s about changing how we think, create, and interact. So what’s coming next for consumer AI?
A lot of people still see AI as futuristic, but it’s already here. Tools like ChatGPT and AI assistants have become part of our routines. They’ve shown us what’s possible, but we’re still early. The real change won’t come from fancier AI models; it’ll come from making AI useful and engaging for everyone, just like smartphones did for technology[1].
Here’s the key to the future of consumer AI: the technology itself is becoming a commodity. It’s not about who can build the best AI models anymore; it’s about who can deliver the best user experience. That’s where the real opportunity lies.
One of the most exciting areas is creative AI. In the past, creating music, videos, or art required skills, tools, and time. Now, AI can generate professional-level content in minutes. This is a big deal, it’s removing barriers and letting anyone with an idea bring it to life.
Take Photoroom, for example. It uses AI to remove backgrounds and enhance images, turning a task that used to take hours into something you can do in seconds. This kind of democratization of creativity is one of the biggest trends right now, and we’re just getting started [2].
AI isn’t just for generating content. It’s going to make every interaction personal. We’re heading towards a future where AI knows your preferences, understands your context, and can predict what you need before you even ask. Personalization is the next frontier.
A good example is RIZZ, an AI-powered dating assistant. Instead of endless swiping, RIZZ focuses on meaningful conversations, tailored to your personality and preferences. This is where consumer AI is headed: less noise, more depth, and a focus on quality over quantity [3].
The real power of AI will come from how well it fits into our lives—not with flashy features, but by truly understanding and adapting to us. Startups that get this right will thrive by creating personalized, intuitive experiences that go beyond what’s possible today.
AI is also going to change how we work. Imagine an AI that not only takes notes during meetings but also organizes them, highlights key points, and reminds you of follow-ups. Tools like Granola are already moving in this direction, combining human input with AI insights to make work more efficient [4].
This is just one example of how AI will automate boring parts of our jobs, freeing us to focus on more meaningful work. The future isn’t about replacing people with AI; it’s about enhancing our abilities so we can do more, faster.
By 2024, the competition in AI won’t be about who has the best model, it’ll be about who has the best user experience. The models are getting easier and cheaper to build, thanks to open-source platforms like LLaMA and Mistral. The challenge now is turning those models into products people love to use [5].
Think about Instagram. They didn’t invent photo filters, they made them easy and fun. That’s what AI startups need to do: take powerful models and create seamless, engaging experiences that solve real problems. It’s not just about putting AI in a nice wrapper, it’s about designing products that feel natural and indispensable.
The next generation of AI apps won’t be about individual use. They’ll be collaborative. Imagine AI tools that let multiple people work together on creative projects in real-time, or apps that combine different AI models for a richer, more interactive experience. AI will become a tool for collaboration, not just a personal assistant [6].
Just like Uber used geolocation for more than maps, AI startups will need to combine models in new ways to unlock entirely new behaviors. The best AI products of tomorrow will let people work across different mediums: text, video, voice, in ways we can’t even fully predict yet.
We’re at the start of something big. As AI gets more accessible and cheaper, we’ll see a wave of strange, fun, and unexpected applications. Just like mobile technology gave us Snapchat and TikTok, AI will unlock possibilities we haven’t even imagined.
The companies that win will be the ones that see beyond today’s problems and create AI experiences people don’t just use, they love. And in doing so, they’ll change not only what we can do, but how we live.
Notes
[1] When I say the real revolution won’t come from “fancier models,” I mean that the core AI technology itself is becoming a commodity. The real breakthroughs will be in how people interact with AI, not necessarily in the AI’s underlying sophistication. This shift is similar to how smartphones changed everything not just by being more powerful than computers, but by being more accessible and intuitive.
a16z. (2023, December 27). Big Ideas 2024: The Consumer AI Battleground Moves from Model to UX with Alex Immerman [Video]. YouTube. https://www.youtube.com/watch?v=kdUUtgnet0E
[2] Photoroom is just one example of creative AI tools breaking down barriers. The trend of democratizing creativity isn’t limited to images—AI-generated music, videos, and text are all part of this movement. What used to take specialized skills and hours of work can now be done by anyone in minutes.
Lightspeed Venture Partners. (2024, June 6). Matthieu Rouif: How Photoroom creates a standout AI product [Video]. YouTube. https://www.youtube.com/watch?v=ZFpyokMnU8I
[3] The personalization wave is interesting because it shifts the focus from sheer functionality to quality of experience. AI will be able to anticipate what we want before we even ask, which feels more like an assistant that truly understands you rather than just a tool that executes commands. This kind of relationship with technology could become deeply personal.
Lightspeed Venture Partners. (2024, October 3). Semil Shah: Consumer AI Tech, Seed Investing, and Apple Intelligence (Generative Quarterly, Part 1) [Video]. YouTube. https://www.youtube.com/watch?v=-_REFNvP1rg
[4] When I mention Granola AI helping automate work, I’m not just talking about efficiency. The deeper change is that AI will start to handle the mundane tasks we don’t even realize we’re wasting time on, like organizing notes or reminding us of follow-ups. This frees up our cognitive load for more important work.
Portfolio, M. (2024, May 22). Introducing Granola: the AI-powered notepad for meetings. Granola. https://www.granola.ai/blog/announcement
[5] The idea that "the battle won’t be about who has the best model but who has the best user experience" is similar to what happened with social media. Facebook didn’t have the best technology in the early days—it was more about how easy and enjoyable the experience was for users, compared to the alternatives.
Moore, O., & Moore, O. (2024, August 21). The Top 100 gen AI Consumer Apps – 3rd Edition. Andreessen Horowitz. https://a16z.com/100-gen-ai-apps-3/
[6] The concept of “multiplayer AI” is still new, but it’s worth keeping an eye on. Imagine AI tools that are designed not just for solo use, but for collaboration between multiple users or even multiple AI models. This could open up entirely new possibilities for teamwork and creativity, in ways we can’t fully predict yet.
Turpentine VC. (2024, September 26). a16z’s Anish Acharya on Consumer AI [Video]. YouTube. https://www.youtube.com/watch?v=s4egz4IiHNY