Originally published here.

In the past year, we've seen an influx of bots—from Meta’s celebrity avatars to Character AI’s digital personalities. The rush to dominate this space has been frantic, marked by high-profile acquisitions, public missteps, and a growing realization that not all bots are created equal. In this article, Jasper Masemann, investment partner, and Lutz Finger, venture partner at Cherry Ventures, argue that for bots to truly revolutionise our digital interactions, they must operate seamlessly across different platforms and applications, enhancing both workflow and entertainment experiences.

Meta’s celebrity bots, touted as the next big thing in digital interaction, have struggled to meet expectations. Despite significant investment and the allure of celebrity names like Snoop Dogg, the novelty wore off fast when the bot couldn’t capture the essence of the person it was modeled after. On the other side of the spectrum, Character AI tapped into a growing demand for digital companionship. Character AI found success by offering bots that not only replicate famous figures but also create new, engaging personalities. However, this success also revealed a troubling reliance on AI for emotional support, particularly among those struggling with clinical depression, raising ethical questions about AI's role in mental health.

The challenges faced by Meta and Character AI underscore a broader issue in the AI space: the delicate balance between realism and user comfort. The closer AI comes to mimicking human interaction, the more it risks crossing into the "uncanny valley," where the experience becomes unsettling rather than engaging. This is particularly problematic for entertainment bots, where the line between fascinating and creepy can make or break user engagement.

Looking forward, the future of AI bots will likely hinge on two critical factors: personalisation and conviction. Users don’t just want a tool that can perform tasks; they want a bot that understands them, anticipates their needs, and responds in a way that feels uniquely tailored to them. It might mean pulling back from hyper-realism and focusing on crafting experiences that are enjoyable without trying too hard to mimic human behavior. This is where bots like Meta’s Pi might have stumbled. Pi was designed to be the “friendliest AI,” but in trying too hard to be conversational and too friendly, it often failed to deliver the right answers efficiently. Users don’t just want a friendly chat—they want a bot that can make decisive, context-aware choices.

The future of AI chatbots is also about breaking down silos. Jasper and Lutz believe that the bots of the future will be those that combine deep personalisation and context-aware choices with the ability to operate across various platforms. Imagine a bot that can help you with your work tasks, keep you updated on your social feeds, and entertain you—all while maintaining a consistent, personalized interaction. This cross-platform capability is where the true potential of AI lies, and it’s the direction in which tech giants like Google, Meta, and Microsoft are moving.

While functional bots serve practical purposes like setting timers, entertainment bots face greater challenges in maintaining user engagement over time. For bots to succeed, Jasper and Lutz argue that they must balance functionality with entertainment while navigating issues of authenticity and user expectation. As companies race to develop the next generation of bots, the focus must shift from merely replicating human interaction to creating experiences that are genuinely useful, engaging, and, above all, authentic. We are moving away from static interfaces towards more dynamic, conversational ones, and users will expect their bots to not just respond but to understand them deeply and interact in a way that feels both intuitive and meaningful.

You can explore these insights and more by tuning into The Edge, our very own podcast breaking down the latest AI developments.