Zerodha founder Nithin Kamath has a message for startup founders trying to catch investors' attention: simply saying a product uses artificial intelligence is no longer enough. Kamath said AI has become so common in the startup ecosystem that putting it at the centre of an investment pitch could actually make investors lose interest.
His comments came in a post on X, where he criticised the growing number of startup pitch decks that open with claims about using AI. Kamath said founders need to show what makes their product different instead of treating AI itself as a selling point.
Nithin Kamath says AI is now 'table stakes'
Kamath said he has seen too many investment presentations starting with the same AI pitch.
"The number of investment decks I get leading with 'we use AI' is ridiculous. It's reached a point where it automatically makes my eyes roll, and I've almost stopped looking at them," Kamath wrote.
He argued that AI has moved from being a standout feature to something investors increasingly expect startups to have.
"Founders need to realize that AI is just table stakes now. Bragging that your product uses AI is like bragging that you take a bath every day. It's not a differentiator."
For founders, his point is simple: mentioning AI does not by itself explain why a startup deserves funding. Investors still need to see the problem being solved, the product's value and what sets the business apart.
'Opening your pitch with AI' may hurt startup founders
Kamath also warned founders against making AI the opening line of their presentations.
"In fact, opening your pitch with it is a surefire way to get ignored, not just by us, but by most serious VCs," he said.
The Zerodha founder also highlighted another challenge facing startups. Generative AI has made it much easier to create professional-looking pitch decks, but that convenience can make presentations increasingly similar.
"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.
The comments underline a broader shift in the startup funding conversation. As AI becomes a standard part of products across industries, founders may need to spend less time explaining that they use the technology and more time showing why their business matters.
