a16z unpacks consumer AI spending: only 4.5% pay, but power users spend $903/month

Andreessen Horowitz released its seventh annual ranking of top consumer AI apps, with a new focus on what users actually pay. The data shows a stark power-user economy: only 4.5% of consumers pay for AI apps, but those who do spend heavily, with the top 20% averaging $903 per month.

Investing partners Olivia Moore and Josh Elman discuss why developers, creators, and professional users dominate spending today, and argue that subscriptions may not be the model that drives mainstream adoption. They also explore the rise of personal agents, how different AI assistants—ChatGPT, Claude, and Gemini—are competing, and why advertising could reshape AI economics.

The discussion highlights significant untapped consumer segments, including shopping, entertainment, social, dating, and marketplace applications, suggesting the consumer AI market is still early.