Nithin Kamath: stop leading pitches with AI, it’s table stakes

What Happened

Nithin Kamath, co-founder and CEO of Zerodha, criticized the frequent opening of startup investment decks with claims that they use artificial intelligence. He described the pattern as overused and no longer impressive to investors. Kamath expressed that AI has become so common in startups that simply stating it as a feature does not explain why a product is distinctive. He compared bragging about AI to saying you take a bath every day, calling it table stakes rather than a differentiator. He also warned that AI-generated, polished-looking decks can make pitches look similar across founders, making it harder to stand out.

Why It Matters

The remarks reflect a shift in how investors evaluate early-stage startups: it is no longer enough to rely on AI as a selling point. Founders are being urged to demonstrate the unique problem their product solves and what sets the business apart beyond the technology. Kamath’s comments, made via a post on X, suggest a broader narrative change in funding discourse as AI becomes embedded across products and pitches.

Background

Kamath has previously highlighted the increasing presence of AI in startup products and presentations. He notes that AI has become ubiquitous in the ecosystem, moving from a potential differentiator to a baseline expectation. This view aligns with observers who see AI as widely adopted rather than uniquely value-adding in early pitches.

Key Facts

• Nithin Kamath is the co-founder and CEO of Zerodha.
• He stated that the number of investment decks opening with 'we use AI' is extremely high.
• He said this pattern causes his eyes to roll and he has nearly stopped looking at such decks.
• Kamath described AI as 'table stakes' and not a differentiator.
• He cautioned that AI-enabled decks can look attractive but fail to convey unique product value.
• His comments were published on X (formerly Twitter) and cited by multiple outlets in corroborating reports.

What Happens Next

Industry observers and founders may shift messaging in pitches to emphasize the problem being solved, the product’s unique value, and differentiating factors beyond the use of AI. Investors might increasingly prioritize evidence of impact, traction, and clear articulation of competitive advantages over claims of AI usage.