Andreessen Horowitz partner Olivia Moore has released a Top 100 report on consumer AI applications, arguing that the category is still in its early stages even as ChatGPT continues to dominate. The report says smaller players such as Suno and ElevenLabs are still showing sustained growth, while several consumer areas remain largely untouched by AI products.
Moore said the opportunity in consumer AI remains large, but she argued that the sector needs to build business models beyond subscriptions and API fees. She pointed to a low current payment rate, saying only 2.2% of U.S. households are paying for AI services. In her view, a stronger model would let users access services for free through indirect monetization such as advertising, then choose whether to pay to remove ads.
She also addressed the high marginal cost of AI services, saying conditions are starting to improve. As one example, she said ChatGPT’s $8-per-month Go plan may be based on cheaper models. Moore added that not every task requires frontier models, and more consumer AI companies could lower costs by building on open-source models.
Andreessen Horowitz (a16z) partner Olivia Moore has published a Top 100 report on consumer AI applications, according to Techub News. The report says ChatGPT still holds a dominant position, while smaller companies including Suno and ElevenLabs continue to post steady growth.
The report also points to several consumer categories that AI has not yet reached. Moore said consumer AI still presents a large opportunity, with one key challenge standing out: the industry needs revenue streams beyond subscriptions and API charges.
She said only 2.2% of U.S. households currently pay for AI services. A better direction, in her view, would be to let consumers use services for free through indirect monetization such as advertising, and then decide for themselves whether to pay to remove ads.
Moore also addressed the high marginal cost of AI services and said the industry is already showing signs of improvement. She cited ChatGPT’s $8-a-month Go plan as one example, saying it may be built on a cheaper model. She added that not every task requires a frontier model, and that more consumer-facing companies could cut costs by building applications on open-source models.
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