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How can AI actually foster more human connection?
That’s a question Menlo Ventures, a venture capital firm that’s invested in companies like Uber, Tumblr, and Anthropic, wants to answer.
Connection is one of a handful of “white space opportunities” that Menlo Ventures is eyeing as fertile ground for new startups in consumer AI technology, according to the firm’s recent “The State of Consumer AI” report.
Menlo Ventures and Morning Consult surveyed roughly 5,000 US-based adults in April about their feelings around AI and how they’ve used the tools within the past six months.
“Today, usage is dominated by these generalist AI systems,” such as OpenAI’s ChatGPT or Google’s Gemini, Menlo Ventures partner Amy Wu Martin told Business Insider. “But we’re seeing, starting with specific categories, this move into more specialized apps.”
Menlo’s research identified five broad categories where specialized AI apps are gaining traction: routine tasks, creative expression, physical and mental health, learning and development, and connection.
Dating, social networking, AI companions, and more
What falls under the connection umbrella?
One niche is dating. Menlo’s market map of consumer AI tools highlighted AI-powered matchmaking apps like A16z Speedrun alum Sitch, Keeper, and Ditto. Then there are social networking apps that use AI agents to surface new people to meet, such as Gigi or professional-focused startups like Series or Boardy. Menlo also puts AI companions (think Character AI or Replika) and the turn-yourself-into-a-bot startup Delphi (a Menlo investment) under its connection thesis.
“People are starting to use AI as a bit of a crutch to actually figure out how to interact with people and feel less awkward,” Martin said, pointing to examples of how people may use AI to prepare for a date or dinner party.
In addition to dating advice or social coaching, the technology can be a semi-social outlet in itself, enabling users to interact with AI-generated personas.
“The biggest gap in the AI connectivity is multiplayer mode,” Martin said, referring to AI that facilitates and participates in group activities.
Social media has largely morphed into entertainment — propelled by the rise of influencers — instead of a place to foster real-life connections. Menlo thinks AI could help bring people together, especially in the still-untapped realm of multiplayer experiences.
“What is the tool that really just helps you be better in your relationships?” Menlo partner Shawn Carolan said. “I don’t want more media coming my way. It’s almost like the opposite of social media.”
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But people aren’t running en masse to AI for connection just yet.
According to the report, only 14% of participants said they used AI for “staying in touch.”
Investors are buzzing about consumer AI
A new crop of startups at the intersection of AI and social networking has stirred buzz with investors.
“We are trying to understand where the puck is going,” Martin said. “The next phase, especially consumer, is around these specialized apps.”
Menlo Ventures isn’t the only firm betting on consumer AI applications.
Amber Atherton, a partner at early-stage consumer fund Patron, recently told BI about wanting to invest in startups that better help people find new relationships and maintain their existing ones.
Beyond connection, Menlo Ventures is also watching spaces like healthcare and wellness, financial management, personalized learning, home-related tasks, and family logistics as opportunities for startups.
Parents, for instance, are AI “power users,” according to Menlo’s survey.
“Ultimately, consumers are trying to get things done,” Martin said.
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