Investment in consumer technology has been on the decline since 2022, driven by a challenging economic landscape and escalating inflation that has made venture capitalists wary of consumer spending capabilities. While recent investments have largely favored enterprise-focused AI solutions—largely due to their substantial budgets and lucrative long-term contracts—Vanessa Larco, a partner at the venture capital firm Premise, predicts a significant shift toward the consumer sector by 2026.
In a recent episode of the Equity podcast, Larco asserted, “2026 is poised to be the year of the consumer.” She highlighted that while enterprises may have the financial resources, their implementation of AI often falters due to uncertainty about how to begin. In contrast, she noted, “The beauty of consumer and prosumer technology is that users already know how they intend to utilize it.” This familiarity leads to immediate purchases and sustained use if the product meets their expectations.
Larco emphasized that consumer-focused startups can quickly assess whether their offerings meet market needs, allowing for faster pivots or adjustments. This adaptability is crucial in an economy marked by uncertainty, especially as successful consumer tech solutions are becoming increasingly evident.
Recent trends suggest a resurgence in consumer tech, exemplified by OpenAI’s integration of shopping features within its ChatGPT platform. Users can conveniently browse various services, from Target to Zillow, all through a single interface. Larco remarked, “AI will evolve to deliver concierge-like services, tailored to individual needs.” She questions which companies will adapt alongside innovation, specifically in relation to OpenAI’s future dominance in the consumer internet space.
While Larco envisions a bustling year for mergers and acquisitions in 2026, she is particularly focused on startups that meet consumer demands without directly competing with OpenAI’s offerings. She believes companies that rely on managing real-world assets will be less threatened by AI advancements.
In light of evolving consumer attention, Larco also pointed out the changing landscape of social media. She expressed concern over the proliferation of AI-generated content, noting that many users now perceive such content as unreliable. As misinformation spreads, platforms like Reddit may lead the charge in validating authentic content, whereas Meta could shift towards a more entertainment-focused model.
Moreover, as Meta makes strides in AI—most recently with its acquisition of the startup Manus—Larco underscores the potential improvement of voice-operated technologies, such as Meta’s Ray-Ban smart glasses. She believes the rise of voice AI will unlock new possibilities for interaction, where audio becomes a preferred medium over traditional screens.
Overall, Larco anticipates a transformative consumer experience in the digital realm, signaling the emergence of innovative monetization models and business strategies. As the technology landscape continues to evolve, the intersection of AI and consumer needs is set to redefine market dynamics in the coming years.
