Consumer AI apps struggle with revenue, a16z's Olivia Moore sees opportunity
only 2.2% of us households pay for ai, but a16z's olivia moore sees potential in non-subscription revenue streams for consumer ai apps.
a16z partner olivia moore analyzed the top 100 consumer ai apps, finding chatgpt leading the pack, while smaller players like suno and elevenlabs show promise. consumer ai faces economic challenges, with only 2.2% of us households paying for ai services, mainly through subscriptions and token usage. moore believes there's a huge opportunity in consumer ai if the industry can tap into alternative revenue streams beyond subscriptions and api charges. she suggests exploring ad-supported models and cheaper, open-source ai models to reduce costs.