How the consumer AI battleground moves from model to UX

I expect user experience to contribute toward the building of moats. An awesome user experience can raise switching costs, strengthen network effects, and empower a brand. – Alex Immerman

Alex Immerman, a partner on the Growth team at a16z, delves into the future of consumer AI, exploring the potential shift from model-centric to user experience-focused AI development, and how this could redefine competitive advantages in the industry.

Table of Contents

1. Shifting focus in consumer AI
2. Breakout consumer apps around someone else’s model
3. User experience as a competitive advantage
4. Commoditization of models
5. Value over underlying models
6. Excitement about AI products like po
7. Open Source models as industry norm
8. Integration of AI into daily interactions
9. Democratizing access to AI technology
10. Separation of product and infrastructure layers within AI companies
11. Attracting more entrepreneurs into the field
12. Future discussions around AI

Shifting focus in consumer AI

The battleground for consumer AI is predicted to transition from being model-centric to focusing more on user experience (UX).

Large Language Models (LLMs) may provide a first-mover advantage today, but enduring success might hinge on traditional competitive advantages such as network effects, high switching costs, scale and brand.

Breakout consumer apps around someone else’s model

Factors like chip shortages, availability of foundational models via API and increasingly powerful open-source models are enabling breakout consumer apps to be built around someone else’s model.

This shift emphasizes delivering superior user experiences based on unique use cases rather than solely relying on model performance.