AI is No Longer a Differentiator in Startup Pitches, Says Zerodha’s Nithin Kamath

Artificial intelligence has rapidly transitioned from an emerging innovation to a standard component in startup strategies and venture capital pitches. However, as the market becomes saturated with AI claims, investors are increasingly looking for deeper value beyond the technology itself.

Addressing this trend, Nithin Kamath, Co-founder and CEO of Zerodha, publicly questioned the habit among founders of making AI the primary highlight of their investment decks. In a post on X, Kamath noted that starting a presentation by boasting about AI integration has become so commonplace that it is losing its effectiveness.

According to Kamath, the core issue isn’t the adoption of AI, but rather using it as the main selling point.

“AI is Just Table Stakes Now”

Kamath highlighted that encountering investment pitches focused heavily on generic AI messaging has become routine—and often produces a negative impression on investors.

He summarized his viewpoint with a straightforward analogy:

“Bragging that your product uses AI is like bragging that you take a bath every day.”

His point emphasizes that incorporating artificial intelligence is now expected as a basic baseline rather than a unique competitive advantage. For entrepreneurs seeking funding, investors want to know what a company achieves through the technology, rather than simply hearing that AI is being used.

The Flaw of Polished, Generic Decks

Kamath also brought attention to the widespread use of AI tools to create visually refined pitch decks. While well-designed presentations are easier to read, he warned that relying on AI-generated design and generic statements can backfire.

When every founder has access to the same tools, pitches risk sounding identical. A polished presentation cannot substitute for a well-thought-out, original business model.

Industry Debate: Table Stakes or Overreaction?

Kamath’s observations sparked significant discussion across social media, drawing diverse perspectives from founders and investors:

• Agreement on Fundamentals: Many users agreed that stating “we use AI” is as mundane as stating a business has a website. They argued that the focus should always be on what problem the company solves and how the technology enables a superior solution.
• Skepticism Toward Hype: Some commenters expressed fatigue over AI buzzwords, noting that highly stylized decks often mask a lack of defensible business strategy.
• Pushback from Critics: Conversely, a few respondents cautioned that dismissing AI-centric pitches too quickly might lead investors to miss out on genuinely innovative, tech-driven ventures.

Key Takeaway for Founders

Kamath’s commentary underscores a recurring reality in venture capital: as a breakthrough technology becomes ubiquitous, its presence alone ceases to be a selling point. For startups, long-term success still depends on solving real problems, demonstrating market demand, and building a defensible business—with or without the buzzwords.