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Leveraging AI and new technologies in app development

6 min read

From: gregisenberg

Hunter Isacson, a creator of consumer apps with over 300 million downloads, shares insights into building successful mobile applications, particularly highlighting opportunities in the current landscape of consumer AI and mobile apps [00:00:41]. He emphasizes that it’s possible to build a startup and generate significant revenue without needing venture capital [00:00:46].

The current landscape offers a unique window for consumer mobile apps, especially with the rise of AI [00:00:41]. Apps are seeing significant monthly recurring revenue (MRR) by leveraging product-led growth and new technologies [00:02:18].

Successful AI-First Apps

  • CalAI: This app is a prime example of integrating AI features in app development by packaging publicly available AI tools nicely [00:03:01]. It leverages an amazing user funnel, good onboarding, and user investment to create perceived value beyond its simple calorie-tracking core [00:03:05]. CalAI effectively combined creators with a simple app and AI to achieve success [00:04:04].
  • Pangu: This app integrates AI into a virtual pet concept, creating a more human experience with character animation [00:34:09]. It’s a re-imagining of an old idea (virtual pets) with the addition of advanced AI [00:35:26].
  • Potential AI Opportunities: There’s potential for an “AI-first” version of apps like Hallow (a Christian prayer app) using technologies like GPT Vision for content creation (e.g., overlaying Bible quotes on scenery) [00:09:31]. AI could also generate answers to complex questions using religious texts [00:09:55].

Leveraging New Platform Features

  • Locket and Widgets: Locket capitalized on the iPhone’s widget functionality to create a social app where pictures shared appear on a friend’s home screen [00:10:35]. This demonstrates the success of building around new platform real estate [00:11:22].
  • Future iOS Opportunities: Hunter predicts “live activities” and iPhone “lock screen widgets” as the next big opportunities, similar to how Locket dominated widgets [00:13:37]. These features offer new “real estate” to interact with users [00:12:12].
  • Re-imagining Old Ideas for New Channels: It’s beneficial to reconsider popular old ideas and apply them to new channels or form factors, such as making a mobile app work in a widget form [00:16:57]. The focus should be on finding existing ideas that can be optimized for a new platform [00:17:03].

Hunter Isacson’s Playbook for Building a $1M MRR App

Hunter outlines a simple, repeatable playbook for building successful consumer apps [00:17:41]:

  1. Build a Simple Experience / Bare Bones MVP: Focus on creating a minimal viable product (MVP) that effectively solves a core problem, even if it’s rough around the edges [00:18:25].
  2. Build a Brand People Love:
    • Use simple, obvious names [00:22:55].
    • Leverage slang from the target community (e.g., “NGL” for “Not Gonna Lie,” “Bags” in crypto) to resonate with users and set a relatable, young vibe [00:22:17].
    • Maintain an authentic voice in public communications and social media, making the brand memeable and relatable [00:32:09].
  3. Get Users on Quickly (at least 100): Test content on platforms like TikTok or Instagram Reels even during the pre-order stage to gauge user response [00:18:43].
  4. Select a Core Action and Northstar Metric: Identify one key metric that matters most and orient all decisions around increasing it [00:19:30]. Aim for a high percentage (over 90%) of users completing this action [00:26:00]. Examples include:
    • Wink: Percentage of users getting a match on their first day [00:20:01].
    • NGL: Percentage of users sharing the link and a few replies [00:20:27].
    • Bags: Percentage of users funding accounts and making a trade in the first day [00:21:05].
  5. Focus on a Single User Flow: Design the app so nearly everyone goes through the exact same flow to easily measure success of the core action [00:26:14].
  6. Continually Seed and Scale: Once the core action is proven, apply pressure by seeding the app in different audiences, niches, and countries, leveraging learnings from initial tests [00:27:01].
  7. Embed Sharing/Inviting into the Core Action: Include a sharing or inviting mechanism within the core user experience to create a viral loop and increase the app’s K-factor [00:27:51]. This reduces reliance on external marketing. Examples:
    • NGL: Users post an NGL link on Instagram or Snapchat [00:28:34]. The launch of the Instagram link feature to all users was a key timing advantage [00:15:29].
    • Bags: Users log in with Twitter, claim a “bags link,” and share it, with a leaderboard tracking invites [00:29:39]. This helped grow followers and hype [00:30:05].
    • Laps: Required inviting 3-5 friends to get into the app, creating valuable users [00:27:38].
  8. Leverage Creators and TikTok: Use influencers and short-form video content to seed the app and quickly achieve enough downloads to activate a growth loop [00:14:24]. This can be done with minimal marketing spend, as seen with NGL’s $10,000 spend for 250 million downloads [00:14:41]. It can involve paid or organic efforts, but the goal is to test and build things that can scale from a small level [00:31:07].

Hunter Isacson is interested in several emerging technologies:

  • Crypto in Consumer Apps: The potential for crypto to go mainstream with regulation and the development of more consumer-friendly crypto apps [00:36:55].
  • Augmented Reality (AR) Glasses: He is particularly excited about AR glasses as the “next step in hardware,” which will allow for immersive experiences where users can prompt an app with AI and share detailed virtual content [00:37:15].
  • Local AI Models on Phones: Hunter foresees phones becoming the primary compute for devices like AR glasses, with the capability to handle more large language models (LLMs) and process AI locally, rather than relying solely on the cloud [00:38:51]. This trend aligns with the development of AI coding tools and AI video tools, suggesting a “singularity” where creation and sharing become seamless [00:37:47].

Advice for Aspiring App Developers

For young individuals looking to enter tech, Hunter strongly advises focusing on consumer mobile apps [00:40:26]. He believes this path provides valuable experience in understanding human psychology, building products people love, and achieving viral growth [00:40:36]. Consumer apps allow for global reach and offer a more “fun” experience compared to B2B or SaaS [00:41:18]. Furthermore, the tools for app development are continually improving, making it easier to build without extensive technical expertise [00:41:39]. The focus should be on leveraging frameworks for ideas (e.g., “CalAI for X,” “Pangu for Y”) rather than seeking entirely novel concepts [00:36:26].

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