Zerodha co-founder and CEO Nithin Kamath has sparked a discussion online after urging startup founders to stop presenting artificial intelligence as a key differentiator in their investment pitches, saying that simply using AI has become "table stakes" for companies.
In a post on X, Kamath said he receives a large number of investment decks that begin with claims about using AI. He admitted that such pitches have become so common that they now make him lose interest in the presentation.
"The number of investment decks I get leading with 'we use AI' is ridiculous," Kamath wrote. He added that it had reached a point where it "automatically makes my eyes roll" and that he had "almost stopped looking at them".
Kamath said that founders should understand that AI is no longer a unique selling point. "AI is just table stakes now," he said. He also compared highlighting AI usage in a pitch to bragging about an everyday habit. "Bragging that your product uses AI is like bragging that you take a bath every day," Kamath wrote, adding that it is "not a differentiator".
He further warned that opening a pitch with a generic AI claim could result in founders being ignored by venture capitalists.
{{/usCountry}}He further warned that opening a pitch with a generic AI claim could result in founders being ignored by venture capitalists.
{{/usCountry}}"Especially now that AI has democratized the ability to generate 'nice-looking' decks, the last thing you want to do is say the exact same generic things as every other founder using the exact same tools," he wrote.
What did social media say?
Kamath's comments sparked a discussion on X, with several users agreeing that simply using AI does not say much about a startup.
One user wrote, "Honestly, 'we use AI' is starting to feel like saying 'we have a website'. The interesting part is what the AI actually lets you do that you couldn't do before. That's the part I'd want to hear about."
Another user commented, "So the bubble finally burst. Hopefully I hear less AI AI in future."
"AI is steaming pile of shit which just smell good enough but no one wants to taste it. AI is Biggest scam ever in the world. Trillion dollar worth of fraud," said a third user.
"I believe you on this. If the deck is pretty and could belong to any founder, they offloaded the thinking and kept the shine. It even does the opposite impact on the seriousness and sincerity of the founder towards their solution if anyone can tell that its generic but pretty," wrote one user.
However, one user questioned whether dismissing AI-focused pitches could also lead to good startups being overlooked. "Wondering if you missed some genuinely good pitches because of the eye roll," one person wrote.
Another user argued that startups should focus on solving problems rather than using AI for its own sake. "The goal of a startup should be to first solve a problem. AI is just a tool. If using the tool helps solve the problem better, then it should definitely be used. Otherwise, it shouldn't be used at all," they said.