MENLO PARK, Calif., June 26, 2025 (GLOBE NEWSWIRE) -- Menlo Ventures, a leading venture capital firm investing at the forefront of artificial intelligence, today released its first 2025: State of Consumer AI report, providing one of the most detailed snapshots to date of how AI has become part of everyday life: who’s using it, how, and why.
Based on a nationally representative survey of over 5,000 U.S. adults in April 2025, the report reveals that 61% of Americans now use AI, with nearly one in five relying on it daily. Extrapolated globally, the firm estimates 1.7-1.8 billion people use AI tools, with 500-600 million using AI daily, signaling that AI is becoming embedded in our daily routines and habits.
Yet while consumer adoption is surging, monetization remains early. The report estimates consumer AI spend at just $12 billion, with only 3% of users paying for AI solutions—this gap between widespread usage and minimal payment represents one of the biggest untapped revenue opportunities in recent history.
“The fact that more than half of Americans already use AI is remarkable, especially considering most are just using it for quick, simple tasks,” said Shawn Carolan, Partner at Menlo Ventures. “The biggest opportunity lies ahead when AI handles complex jobs from start to finish. Imagine a parent saying, ‘Plan summer for my kids,’ and the AI takes care of everything: researching camps, juggling schedules, buying gear, coordinating carpools. That’s the promise: less drudgery, more living.”
Beyond capturing future potential, the report goes on to explore how consumers are using AI today across five key areas of daily life: Routine Tasks, Physical and Mental Health, Learning and Development, Connection, and Creative Expression. For each, it details emerging habits, the tools people use, and the untapped opportunities where AI can deliver greater value.
Key Findings:
- AI is Becoming a Daily Habit for Many — But Monetization Is Just Beginning
More than 60% of Americans have used AI in the past six months — and nearly 1 in 5 (19%) report daily usage. Globally, Menlo Ventures estimates 1.7 to 1.8 billion people use AI tools. Despite this surge in adoption, consumer AI spend remains just $12 billion, with only 3% of users paying — a striking gap that signals massive untapped potential. - AI Adoption Reveals Surprising Super Users
AI usage now cuts across every generation and life stage: Millennials lead in daily use at 24%, while adult students show the highest overall adoption, with 85% having used AI recently. Three-quarters of working adults use AI too. Even Baby Boomers are part of the shift: Close to half (45%) report using AI while 11% use it daily. The biggest surprise? Parents are power users. They’re nearly twice as likely to use AI daily compared to non-parents (29% vs. 15%), a sign that AI is becoming an essential tool for managing the chaos of modern family life. - High Friction and Highly Personal Categories like Physical and Mental Health and Personal Finance Remain Under-Served. Despite claims that AI is replacing therapists and transforming healthcare, actual usage reveals a massive gap between perception and reality: Among the 41% of Americans who sought mental health support in the last six months, only 9% turned to AI for help. These high-frequency, high-friction, high-trust activities demand specialized experiences that general AI can't deliver, leaving ample white space for the purpose-built companies that do.
- General Tools Are Stretched Too Thin, Creating an Opportunity for Specialists
Today, 91% of users rely on a general AI assistant for almost every task, yet 60% have tried specialized tools when the job demands more. This pattern is most evident in creative work: Tools that enable professional-grade results (think Canva for design) capture nearly half of all spending on specialized AI tools (45%), proving that consumers will pay when specialized tools outperform general-purpose ones.
This gap between high-frequency needs and low AI adoption is where Menlo sees the greatest opportunity for startups to build enduring consumer businesses. “If a general AI assistant can already do the job decently, it’s probably not the right place to build a startup,” said Amy Wu Martin, Partner at Menlo Ventures. “The best opportunities are in messy, recurring problems where general tools break down. Think deeply personal responsibilities like managing money, healthcare, or coordinating logistics across the entire family. These are pain points people deal with every week, but still haven’t handed off to AI. That gap is where the real value is.”
The full 2025 State of Consumer AI Report identifies where value is being left on the table, which consumer behaviors have staying power, and where opportunity exists for founders to build the next wave of transformative AI products.
For Menlo Ventures’ complete findings — including five predictions for what’s next — visit: Menlo Ventures' State of Consumer AI 2025.
About Menlo Ventures
Menlo Ventures is a leading early-stage venture capital firm investing at the forefront of AI. Our portfolio includes more than 80 public companies and over 165 exits through mergers and acquisitions. Currently managing more than $6.8 billion in assets, we invest at every stage across consumer, enterprise, and healthcare. Our portfolio companies include Abnormal AI, Anthropic, Benchling, Carta, Chime, Harness, Poshmark, Recursion, Roku, Siri, Typeface, and Uber. We strive to have a positive impact on everything we do. When we’re in, we’re ALL IN, and we are ALL IN on AI.
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Media Contact
For more information or to schedule an interview with one of the report authors please contact menlo@nectarpr.com.
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