B2BVault's summary of:

State of Consumer AI 2025: Product Hits, Misses, and What’s Next

Published by:
a16z
Author:
Olivia Moore & other

Introduction

Big AI apps launched fast in 2025. This report explains who won, who struggled, and what consumer AI may look like next year.

What's the problem it solves?

People hear nonstop hype about AI tools but do not know which ones users actually keep using, paying for, or dropping. This report cuts through the noise with real usage and growth data.

Quick Summary

Consumer AI use is growing, but most people stick to one main assistant. ChatGPT is still far ahead in users, engagement, and retention, even as rivals ship flashy new features.

Google made a strong comeback with Gemini, viral image and video models, and NotebookLM. Growth is fast, but access and product sprawl still slow adoption. Other players like Anthropic and Perplexity focus on power users, not mass consumers.

Startups have big room to win. Big labs focus on models and core apps, leaving space for simple, focused consumer products that solve one clear problem better than anyone else.

Key Takeaways

  • ChatGPT is the default AI for most people and keeps users better than rivals
  • Gemini is growing fast thanks to viral creative tools, not chat alone
  • New features inside big apps rarely change user behavior
  • Standalone, focused products perform better than cluttered all in one tools
  • Paid users behave very differently from free users
  • Startups can still win with clear use cases and strong product focus

What to do

  • Do not chase every AI feature trend
  • Pick one clear user job and build for it deeply
  • Measure retention, not just signups
  • Avoid bloated interfaces and overloaded products
  • If you are a startup, move where big labs are not paying attention
  • If you are a team, design for daily use, not demos

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