Follow the Wallet

Consumer AI is growing at an incredible pace, but here's the thing: even though millions of people are using AI, very few are actually paying for it. So how are these platforms going to make money, and what does that mean for retail media and the future of shopping?In this episode, I'm digging into some fascinating new research from Andreessen Horowitz on consumer AI adoption, spending habits, and the business models emerging around these platforms. I explore why people are willing to pay for productivity but not necessarily everyday consumer queries, why advertising could become the dominant monetization model for AI agents, and what a potential ChatGPT wallet could mean for closed-loop measurement and retailers' first-party data. Plus, I look at the race to build the winning AI shopping experience and why retailers need to think carefully about whether to embrace or block emerging AI agents. This episode is sponsored by GrowthLoopTimeline[01:24] — AI adoption is booming, but few consumers are willing to pay for it.[04:02] — Why people want to spend time, not just save it, and what that means for AI shopping.[06:15] — Why subscriptions may not be enough, and why advertising could become AI’s dominant revenue model.[09:30] — How a potential ChatGPT wallet could reshape retail media measurement and first-party data.[12:36] — Why the race to build the winning AI shopping experience is still wide open.[13:38] — Why retailers need to think carefully before blocking AI shopping agents. Links & ResourcesAndreessen Horowitz just dropped some major insights on their blog about the adoption of consumer AI technology. Read the full research report at the a16z blog.Listen to the recent The a16z Show podcast episode that discusses the research: The Top 100 Consumer AI Apps: Who’s Actually Paying?Subscribe to The a16z Show on Apple PodcastsRead my related articles:Not all shopping is funWhy Agentic Shopping Poses an Existential Threat to Retail Media (Part 1)Agentic Shopping Poses An Existential Threat To Retail Media (Part 2)Agentic Shopping Might Seem Crazy. So Did Self-Service Supermarkets.Check out Basket Case, a project I’m part of with The Drum and QSIC, an irreverent and lively podcast series talking shop: latest episodeI'm sharing comedy skits on Instagram about retail media! Follow along: @retailmediabreakfastclubSubscribe to Retail Media Breakfast Club's daily newsletterFollow Kiri Masters on LinkedIn