Why VCs think consumer AI hasn’t lived up to the hype

In a recent discussion featured on StrictlyVC Download, notable investors Chi-Hua Chien of Goodwater Capital and Elizabeth Weil from Scribble Ventures shared their insights on the current state of consumer AI. Despite the buzz surrounding technologies like ChatGPT and Gemini, they argue that the consumer AI market has yet to reach its full potential. Chien and Weil highlight that we are still in what they describe as the 'command line era' of artificial intelligence. This phase, they suggest, limits the variety of applications and user experiences available today. The duo emphasizes how advancing form factors could be key to unlocking new use cases that go beyond current offerings. The conversation also touches on the importance of developing AI-native products rather than simply adapting existing solutions. They discuss the trust barriers that consumers face and how changing user behaviors play a significant role in the evolution of AI technologies. Looking ahead, they urge the next generation of entrepreneurs to rethink traditional concepts—from social media platforms to home maintenance solutions—in order to fully harness the capabilities of AI.