Nithin Kamath Warns Founders Against AI-Heavy Pitches: "It's Not a Differentiator..."

Artificial Intelligence has become the startup world's favorite buzzword. From pitch decks to investor meetings, founders are increasingly highlighting AI as the backbone of their products. But according to finance influencer and Zerodha co-founder Nithin Kamath, simply saying "we use AI" is no longer enough to grab an investor's attention.

AI Is No Longer a Differentiator:

Sharing his thoughts on X, Nithin Kamath revealed that he receives countless startup investment decks that lead with claims about using AI. While AI was once considered a cutting-edge advantage, Kamath believes it has now become a basic expectation for many modern businesses.

In his view, founders often make the mistake of presenting AI itself as their biggest selling point. However, when nearly every startup is making the same claim, investors are left asking a more important question: what is truly unique about the business? Kamath compared the trend to boasting about a daily habit that everyone is expected to follow, suggesting that AI has become a standard tool rather than a standout feature.

The Real Question Investors Want Answered:

According to Kamath, startups should focus less on the technology and more on the value they create. Investors are increasingly interested in understanding how a company solves a real-world problem, improves customer experiences, or builds a sustainable business model.

AI may power a product, but investors want to know what that technology enables. Can it save time, lower costs, improve accuracy, or unlock opportunities that were previously impossible? Those answers carry more weight than the simple mention of AI.

Polished Decks, Generic Stories

Kamath also raised concerns about the growing use of AI-generated presentations. With modern tools making it easier than ever to create visually impressive pitch decks, standing out has become more challenging.

A polished presentation may look professional, but if the messaging sounds similar to every other startup, it risks losing impact. Investors are increasingly looking for originality, clarity, and genuine insight rather than fancy slides.

A Lesson for Founders

The discussion sparked by Kamath's comments highlights a changing investment landscape. AI remains an important business tool, but it is no longer the headline. For founders seeking funding, the real opportunity lies in demonstrating a unique solution, a strong market fit, and a clear path to growth. In today's startup ecosystem, what matters most is not whether you use AI, but how effectively you use it to solve meaningful problems.

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.

Founders need to realize that AI is just table stakes now. Bragging that your product uses AI is…

— Nithin Kamath (@Nithin0dha) August 14, 2026