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Where does consumer AI stand at the end of 2025?

As 2025 comes to a close, consumer AI is entering a new phase. A small number of products now dominate everyday use, multimodal models have unlocked entirely new creative workflows, and the big labs have pushed aggressively into consumer experiences. At the same time, it is becoming clearer which ideas actually changed user behavior and which ones did not. In this episode, a16z consumer investors Anish Acharya, Olivia Moore, Justine Moore, and Bryan Kim look back on the biggest product and model shifts of 2025 and ahead to what 2026 may bring. They discuss why consumer AI appears to be trending toward a winner-take-most model, how subtle product design choices can matter more than raw model quality, and why templates, multimodality, and distribution are shaping the next wave of consumer products. Where do startups still have room to win? How will the role of the big labs continue to change? And what will it actually take for consumer AI apps to break out at scale in 2026? Timecodes: 0:00 Introduction & Market Overview 0:35 Who Won Consumer AI in 2025? 1:22 Major Model and Product Launches 2:24 Image and Video Model Innovations 4:05 Product Sensibility and User Experience 6:40 Advances in Image and Video Models 9:11 Under-hyped Products and Productivity Apps 10:21 Prosumer Tools and Power User Workflows 12:56 Gemini vs. ChatGPT: Distribution and Brand 14:04 Product Nuances: Onboarding and Engagement 16:09 Social Features and Group Chat 19:26 Sora, TikTok, and the Status Game 21:02 Challengers: Claude, Perplexity, Grok 23:37 Meta, Grok, and Rapid Model Progress 26:54 Predictions for 2026: Enterprise, Apps, and Multimodality 32:02 Startup Opportunities and App Generation 36:27 Favorite Products and Recommendations 42:19 Building Consumer Products in 2026 Resources: Follow Anish: https://twitter.com/illscience Follow Olivia: https://twitter.com/omooretweets Follow Bryan https://twitter.com/kirbyman01 Follow Justine: https://twitter.com/venturetwins Stay Updated: If you enjoyed this episode, be sure to like, subscribe, and share with your friends! Find a16z on X: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Listen to the a16z Podcast on Spotify: https://open.spotify.com/show/5bC65RDvs3oxnLyqqvkUYX Listen to the a16z Podcast on Apple Podcasts: https://podcasts.apple.com/us/podcast/a16z-podcast/id842818711 Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details, please see a16z.com/disclosures.

Olivia MoorehostBryan KimhostAnish AcharyahostJustine Moorehost
Dec 28, 202543mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Consumer AI in 2025: ChatGPT leads, multimodal virality reshapes competition

  1. ChatGPT remained the clear consumer leader in 2025 (roughly 800–900M WAU) with strong brand “Kleenex” effects, while Gemini accelerated recently driven by viral multimodal model launches like NanoBanana.
  2. The biggest consumer growth catalysts shifted from text chat to image/video breakthroughs—especially realism, controllability, and multimodal reasoning—plus surprising enablers like search integration and audio-in-video.
  3. Product execution and onboarding nuances (templates, trending prompts, frictionless first success) increasingly determine whether users try and stick with new capabilities, even when model quality is high.
  4. Several “new primitives” (connectors, proactive assistants like Pulse, browser agents like Comet) look strategically important but still feel unreliable or mis-executed, creating room for startups to win with opinionated UX.
  5. For 2026, the group expects more “anything-in/anything-out” multimodality, enterprise-to-consumer spillover via workplace adoption, rising app-generation efforts, and continued opportunity for startups—especially outside pure text-in/text-out assistants.

IDEAS WORTH REMEMBERING

5 ideas

ChatGPT’s lead is reinforced by brand and habit, not just model quality.

The panel cites low multi-homing (only ~9% pay for more than one assistant) and that <10% of ChatGPT users even visited other major providers for much of the year, suggesting inertia and “default assistant” behavior matter as much as features.

Gemini’s clearest wedge is best-in-class multimodal virality, not generic chat.

Viral launches like NanoBanana (and Veo for video) pull users into Google surfaces even if they don’t think of Gemini as their primary assistant, and Android distribution meaningfully boosts mobile scale versus iOS.

Modern image/video differentiation is shifting from aesthetics to realism + reasoning + accuracy.

Beyond “style,” users now expect correct physical details, multi-input coherence, and even factual accuracy (e.g., product or historical fidelity), which sometimes requires search integration rather than just better generation.

UX templates and guided starting points are becoming the growth lever.

They contrast Gemini’s blank-slate prompt box with ChatGPT’s trending/template-led flow that nudges users into a first successful generation, then keeps them creating via character consistency and iterative suggestions.

Some under-hyped features (connectors, proactive nudges) are strategically huge but need reliability.

Connectors to email/calendar/docs and proactive products like Pulse hint at an “everything/workspace” direction, yet inconsistent performance and unclear everyday value currently limit retention.

WORDS WORTH SAVING

5 quotes

For most of the year, less than 10% of ChatGPT users even visited another one of the big LLM providers like Gemini

Olivia Moore

ChatGPT is like the Kleenex of AI.

Bryan Kim

These are product nuances that I, I think makes people actually take the first step- to generate it.

Bryan Kim

I think it's because it's not the core competency of these companies anymore- to build opinionated standalone consumer UI.

Olivia Moore

I genuinely believe that the models have gotten to the level of quality that you can build a real scalable app on top of them, and so the hope is 2026 will be a huge year for consumer builders.

Justine Moore

Winner-take-most dynamics in LLM assistantsChatGPT vs Gemini: brand vs distributionViral image/video moments (Ghibli, NanoBanana, Veo, Sora)Multimodal realism, reasoning, and accuracySearch integration and audio as unlocksOnboarding, templates, and product sensibilityProsumer workflows: connectors, browser agents, repeatable tasksSocial features: group chat, Sora feed, status gameChallengers: Claude, Perplexity, Grok, MetaCompute constraints and inference tradeoffsApp generation and apps directoriesStartup advantage: opinionated UI + multi-model

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