Why a VC is betting AI is 'the opposite of social media' and will forge more human connections

Investors are increasingly intrigued by the potential of consumer AI to transform how we connect with one another. Menlo Ventures, known for its investments in high-profile companies such as Uber and Anthropic, is exploring this promising area. They aim to understand how AI can create more meaningful human interactions. In a recent report titled "The State of Consumer AI," Menlo Ventures collaborated with Morning Consult to survey approximately 5,000 adults across the United States regarding their experiences with AI technologies. According to Menlo's partner, Amy Wu Martin, the current market is largely dominated by generalist AI platforms like OpenAI's ChatGPT and Google's Gemini. However, there is a noticeable shift towards more specialized applications in various domains. The research highlighted five key areas where tailored AI applications are gaining popularity: routine tasks, creative expression, mental and physical health, learning, and importantly, human connection. Within this last category, several innovative solutions are emerging, particularly in dating and social networking. AI-powered matchmaking applications, including Sitch, Keeper, and Ditto, are singled out as examples of how technology can facilitate romantic connections. Moreover, AI-enhanced social networking platforms like Gigi and professional networking tools such as Series and Boardy aim to introduce users to new potential connections. The report even mentions AI companions, like Character AI and Replika, which serve as interactive personas that users can engage with. Martin notes that many individuals are turning to AI for assistance in social situations, using these tools to prepare for events like dates or gatherings. Despite the potential for AI to enhance interpersonal connections, the report indicates that the majority of users are not yet leveraging AI for social interaction, with only 14% citing it as a tool for staying in touch. Menlo Ventures believes there is significant room for growth in AI-driven social applications, particularly in creating multiplayer experiences that could redefine how people connect. As the landscape of social media continues to evolve—largely towards entertainment and influencer-driven content—Menlo Ventures argues that AI has the potential to foster more authentic relationships. Partner Shawn Carolan emphasized the need for tools that genuinely improve interpersonal relationships, suggesting that the future of social technology could be the antithesis of traditional social media. In addition to focusing on connection, Menlo Ventures is also monitoring opportunities in healthcare, financial management, personalized education, and family logistics. Their survey revealed that parents are particularly enthusiastic users of AI technology, indicating a broad spectrum of applications yet to be fully realized. As consumers seek efficient ways to navigate their lives, the evolution of consumer AI remains a space to watch closely.