Olivia Moore, a partner at Andreessen Horowitz, has highlighted that the consumer AI market is still in its nascent phase. Her recent report on the top 100 consumer AI apps indicates that while ChatGPT leads, other applications such as Suno and ElevenLabs are demonstrating resilience.
Moore notes that the majority of AI revenue to date has been generated from subscriptions and token usage, largely concentrated on enterprise and 'prosumer' segments. She suggests that the industry needs to explore alternative revenue streams beyond these models, particularly given that only 2.2% of US households are paying for AI.
The report also identifies several consumer categories, including social apps, dating apps, marketplaces, retail, travel, finance, and health, that currently lack AI entrants within the top 100 list. Moore believes that the next six months should see developments in these 'whitespace' areas.
Moore also observed that many services initially perceived as consumer AI are in fact 'prosumer' in nature, with companies like Gamma and ElevenLabs transitioning to majority-enterprise businesses within 18 months of starting as consumer-focused. This blurs the lines between consumer and enterprise applications.