In recent years, venture capitalists have navigated a challenging environment for consumer technology investments, marked by diminished returns and a slowdown in blockbuster exits. Funding rounds for apps, gadgets, and digital services that once captivated markets have dwindled, as economic pressures and shifting consumer behaviors favor more conservative bets. This downturn has left many investors searching for the next catalyst to reignite growth.

Yet, a cadre of forward-thinking VCs is pinning their hopes on artificial intelligence as the force that could reverse this trend. By integrating AI into everyday consumer products, they argue, startups can create novel experiences that stand out in a saturated market, potentially leading to the kind of viral adoption seen in the early days of social media.

Emerging Optimism Among Investors
This optimism is echoed in recent analyses, including a report from Business Insider, which highlights how a vocal group of VCs believes AI will transform consumer tech from its current slump. These investors point to AI’s ability to personalize user interactions, automate mundane tasks, and generate content on demand, thereby addressing the fatigue consumers feel toward repetitive apps and hardware.

For instance, AI-driven companions could evolve beyond simple chatbots into sophisticated tools that anticipate needs, such as curating personalized shopping lists or managing daily schedules with uncanny accuracy. This shift, VCs contend, moves consumer tech from passive consumption to active enhancement of daily life, potentially unlocking billions in untapped revenue.

AI’s Role in Revitalizing Sectors
Drawing from insights in a related piece by Business Insider on dating and social apps, investors are betting on AI to tackle societal issues like loneliness by fostering genuine connections through intelligent matching algorithms. Unlike traditional platforms, these AI-infused services could analyze behavioral data to suggest real-world meetups, blending digital and physical worlds in innovative ways.

Moreover, the pressure on AI to deliver economic value is immense, as noted in an Axios article emphasizing the high stakes of massive investments by companies and governments. If AI succeeds in consumer applications, it could stabilize venture capital flows, preventing a broader tech recession.

Challenges and Realistic Expectations
However, not all views are unbridled enthusiasm; some experts warn of hype cycles that could lead to disillusionment. A Business Insider analysis describes AI entering a “meh” era, where initial excitement gives way to practical evaluations, which might ultimately strengthen the technology’s foundation.

VCs like those at Menlo Ventures, as profiled in another Business Insider report, advocate for specialized AI apps that promote human connections, such as multiplayer experiences that bring people together offline. This approach contrasts with past consumer tech failures by focusing on meaningful utility rather than fleeting novelty.

Future Projections and Strategic Bets
Looking ahead, predictions from top VCs in a Business Insider forecast for AI trends suggest that 2025 could see a surge in agentic AI—systems that act autonomously on behalf of users—revitalizing sectors like e-commerce and entertainment. Investors are also eyeing regulatory changes that could ease liquidity, as discussed in a Business Insider overview of 2025 tech trends.

Ultimately, while risks remain, including potential bubbles as flagged in a Business Insider guide on spotting AI overvaluations, the consensus among insiders is that AI represents a pivotal opportunity. By solving real consumer pain points, it could not only end the slump but redefine the industry’s trajectory for years to come, provided startups execute with precision and avoid the pitfalls of overhype.

The FuzionPro product benefits carriers and their technology vendors by enabling these connections without the need for custom coding or contracted services to build and maintain them, the company said in a Monday (Sept. 15) press release.

With the connections enabled by this SaaS product, carriers and their technology partners can unlock data, automate workflows and generate insights for improved operations and profitability, according to the release.

This capability provides carriers a way to improve their operations and profitability and offers vendors an opportunity to boost revenue and increase customer satisfaction, per the release.

Tranztec CEO Dennis Abrahams said in the release that “once systems are connected through FuzionPro, our partners have found that it provides much more than an integration and have access to a true data hub with a comprehensive set of tools to unlock value and drive better, more profitable economics for the entire operation.”

PYMNTS reported in December 2023 that AI is optimizing trucking operations by automating repetitive tasks, using data to facilitate better decision-making, streamlining workflows and reducing costs.

“A lot of the tasks done within the industry on a daily basis can be automated, first of all,” Jaime Tabachnik, co-founder and CEO at trucking FinTech Solvento, told PYMNTS at the time. “And second, you can leverage data to make better decisions to optimize your products. Optimizing efficiency and reducing waste in the system will eventually result in greater profits for everyone.”

In August, Oway raised $4 million in a seed round to support its “rideshare freight platform” that provides an AI-enabled marketplace designed to cut less-than-truckload freight costs. The company said its marketplace uses AI to track vehicles and match them with shippers, taking advantage of the fact that 50% of all truck space in the U.S. goes empty.

In March 2024, Iron Sheepdog raised $10 million to expand its broker- and contractor-focused trucking solution. The company said at the time that its technology platform uses GPS tracking, real-time analytics tools, digital ticketing, and automated invoicing and reporting to offer transparency and reliability to “a traditionally disparate industry.”

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US: Travel technology company Sabre has confirmed a partnership with blended travel platform Travelin.Ai while also restructuring its sustainability team, which saw the departure of senior executives.

Sabre signed a deal with Travelin.Ai that will give the corporate booking platform access to its SabreMosaic Travel Marketplace. The agreement included content from traditional airlines, NDC offers, low-cost carriers, and lodging suppliers.

The partnership also brought Travelin.Ai customers access to Sabre’s Lodging AI technology. The tool was designed to provide personalised hotel suggestions based on trip context and traveller preferences, including recommendations when flights were booked without a hotel or when properties were sold out.

Sabre said early testing showed that travellers engaging with AI-powered hotel options were up to 14 per cent more likely to complete a booking.

Travelin.Ai, which enables travellers to combine business and leisure bookings in a single workflow, will also offer split payment technology to separate business and personal expenses. The new functionality is set to roll out via travel management companies across the UK, Nordics, US, Australia, and Germany.

The move follows its recent launch of Mosaic Marketplace, an AI-powered platform that utilises AI-powered tech to present content to customers based on user preferences.

Separately, Sabre confirmed that three executives had departed its sustainability team as part of an internal restructuring. The exits raised questions about how the company intends to maintain momentum in its environmental programmes at a time when demand for sustainable travel options is growing.

Highlights

• Sabre partnered with corporate booking tool Travelin.Ai to expand access to its travel marketplace

• The agreement included Sabre’s Lodging AI, offering personalised hotel recommendations

• Travelin.Ai supports blended business and leisure bookings with split payment options

• Sabre restructured its sustainability team, leading to the departure of three executives