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Shawn Carolan, Amy Wu Martin, C.C. Gong, Sam Borja — Menlo Ventures - 2025: The State of Consumer AI - June 2025 logo

Shawn Carolan, Amy Wu Martin, C.C. Gong, Sam Borja — Menlo Ventures - 2025: The State of Consumer AI - June 2025

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Consumer AI adoption insights from Menlo Ventures survey of 5,000+ U.S. adults

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Type
Open Source
Company
Menlo Ventures
Visit Website GitHub (38 stars)

About Shawn Carolan, Amy Wu Martin, C.C. Gong, Sam Borja — Menlo Ventures - 2025: The State of Consumer AI - June 2025

This report by Menlo Ventures analyzes the state of consumer AI in 2025, based on a survey of over 5,000 U.S. adults. Key findings include that 61% of American adults have used AI in the past six months, with 1.7–1.8 billion users globally and 500–600 million daily users. The report explores adoption across generations, income levels, and employment status, revealing that Millennials are the most frequent daily users and that work, school, and parenting drive usage. It also highlights a $12 billion consumer AI market with a significant monetization gap, as only about 3% of users pay for premium services. Authored by partners Shawn Carolan, Amy Wu Martin, C.C. Gong, and Sam Borja, the report provides actionable insights for founders and investors building consumer AI products.

Key Features

Survey of over 5,000 U.S. adults
Analysis of AI adoption across generations (Gen Z, Millennials, Baby Boomers)
Insights on daily vs occasional usage patterns
Monetization gap analysis revealing only 3% of users pay for premium
Demographic breakdowns by income, employment, and parenthood status
Comparison with enterprise AI spend ($13.8 billion in 2024)
Report authored by Menlo Ventures partners with Claude Sonnet 4

Pros & Cons

Pros
  • Data-driven insights from a large-scale survey (5,000+ respondents)
  • Covers multiple demographic segments including income, age, and employment
  • Actionable analysis of monetization opportunities and gaps
  • Authored by experienced venture capital professionals with sector expertise
  • Free to access with no paywall
Cons
  • Survey limited to U.S. adults, may not represent global trends
  • Self-reported data may include response biases
  • Focused on adoption metrics rather than in-depth product features or user experience
  • Snapshot as of mid-2025, does not capture future changes

Best For

Market research for AI startups and product teamsStrategic planning for consumer AI product developmentUnderstanding consumer behavior and adoption trendsInvestor decision-making for AI venturesAcademic or industry analysis of generative AI adoption

FAQ

What percentage of American adults have used AI in the past six months?
According to the report, 61% of American adults have used AI in the past six months.
How many people globally use AI daily?
The report estimates 500–600 million people engage with AI daily globally.
What is the size of the consumer AI market?
The consumer AI market has reached $12 billion in just two and a half years since ChatGPT's launch.
Which age group is the most frequent daily AI user?
Millennials (ages 29-44) emerge as the most frequent daily AI users, surpassing Gen Z.
What is the monetization gap in consumer AI?
Only about 3% of consumer AI users pay for premium services, leaving a massive gap between usage and revenue.