Shoppers in search of innovative gadgets powered by generative artificial intelligence technology may find themselves somewhat disappointed this holiday season, as options remain limited. The introduction of generative AI has created a significant buzz, particularly following the release of OpenAI's ChatGPT in November 2022. While start-ups have secured substantial investments to develop new generative AI tools and established technology firms have purchased millions of Nvidia processors to train AI models, the expected influx of hardware products centred around this cutting-edge technology has yet to materialise.
The enthusiasm for generative AI gadgets was palpable at the Consumer Electronics Show (CES) held in January, where industry experts and enthusiasts eagerly anticipated products from prominent start-ups like Humane and Rabbit. These devices promised transformative functionalities, including translation, voice memos, and alarm-setting capabilities, which garnered considerable attention. Paul Gagnon, a vice president at analyst firm Circana, noted the high expectations surrounding these products.
However, as the year progressed, many of these generative AI devices fell short of consumer expectations. Reviews highlighted issues such as sluggish performance and frequent malfunctions, which contributed to a growing skepticism among potential buyers. Gagnon remarked on the struggle to effectively communicate the capabilities of these devices to consumers, particularly when the promises made were vague to begin with.
One major obstacle hindering the advancement of generative AI hardware is the computational limitations of current devices. Ben Bajarin, CEO of Creative Strategies, explained that the existing technology is “compute restrained,” lacking the powerful silicon chips and components necessary for enhanced performance. This issue has particularly hindered devices striving to compete with the functionality offered by modern smartphones. Furthermore, the high price points of generative AI devices may deter consumers, compounded by confusion surrounding their practical applications.
Devices such as the Ray-Ban Meta smart glasses exemplify the challenges faced by generative AI hardware. These gadgets require a smartphone connection for their accompanying applications and dependable internet connectivity to function optimally. Bajarin cautioned that poor internet service could result in frustrating performance delays, potentially alienating users altogether.
Although prominent technology companies, including Microsoft, Apple, Intel, Dell, and Lenovo, have enthusiastically promoted new lines of personal computers designed to perform generative AI tasks, consumer interest has yet to match the marketing efforts. Ryan Reith, a vice president at the International Data Corporation (IDC), suggested that consumers do not see a pressing need to invest in these higher-end devices, given that they can already access tools like ChatGPT through their existing computers.
Despite the widespread excitement surrounding generative AI within Silicon Valley, experts caution that it is still far from mainstream adoption. Bajarin indicated that we are currently at “inning zero” regarding the technology’s prevalence in everyday use, with only a small percentage of the population utilising the AI-driven tools available today.
Looking ahead, industry analysts anticipate that it may take until 2025 for a significant proliferation of devices—such as computers, smartphones, and gadgets utilising generative AI—to become available to consumers. Steve Koenig, vice president of research at the Consumer Technology Association (CTA), underscored the expectation for a substantial resurgence in the market for generative AI hardware by that time.
As the holiday season unfolds, a select number of generative AI devices are available for early adopters, even as the broader market for these technologies continues to evolve and expand.
Source: Noah Wire Services