Source: The Verge
The honeymoon period for consumer AI is collapsing fastest among Gen Z and younger millennials—the demographic expected to adopt earliest. They are encountering hallucinations, poor reasoning, and repetitive outputs rather than the promised utility. Their disillusionment spreads through social networks faster than any marketing campaign builds enthusiasm. This exposes a gap between AI vendors' go-to-market strategy (adoption volume first, monetization later) and user retention reality. OpenAI, Google, and others face a situation where initial user numbers mean nothing if the product fails to deliver concrete, repeatable value. The threat isn't competition. Young consumers who have tried and rejected these tools won't return easily, while older professionals—who may have lower expectations or specific use cases—become the actual sustainable user base.