Consumer AI is having a utility problem; Meta launches Llama 3; a map of America's AI job hotspots; AI demand threatens electricity supply; Google reorgs its AI teams

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Apr 19, 2024

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Consumer AI devices are having a difficult time lately. With global shipments of smart home devices declining in 2023, it seemed only natural that the market would look to generative AI to breathe new life into existing devices or expand with a host of new, mobile AI-powered gadgets. However, a different story is playing out, with a string of recent releases failing to capitalize on the potential of generative AI.

Take, for example, the much-hyped Humane Ai Pin which was finally available for purchase this week, a year after it was first previewed during a TED talk by the company’s cofounder Imran Chaudhri. The device promised unique, AI-powered features that helped people move away from using standalone apps and instead adopt a voice-driven interface focused on solving tasks. However, reviews of the Ai Pin have been brutal, to say the least. So, what went wrong?

MKBHD Calls Humane AI Pin the 'Worst Product' He's Ever Reviewed | PetaPixel — MKBHD called the Humane AI Pin “the worst product” he’s ever reviewed

The Humane Ai Pin faced an uphill battle from the start. With most smartphones already offering the kind of functionality it promised, the additional features offered by the Ai Pin weren't enough to justify the $700 price point for many consumers. Plus, it was plagued by software problems and overheating issues which are not great for a device designed to be worn close to your skin.

I came to this realization as I reflected on my own relationship with two of Meta’s consumer AI devices: the Portal video calling screen and the Ray-Ban smart glasses.

Portal served a very niche purpose during the pandemic: it was a second screen for me to make work-related video calls. As we were all working from home, the Portal had Zoom as its killer app and it worked incredibly well, freeing real estate on my computer screen for other tasks. But now that I’ve returned to working in an office environment, I rarely, if ever, use it at home—and I’m not alone, since Meta has chosen to discontinue the product.

Meta Portal: Consumer Versions of Video Device Being Discontinued — Meta’s Portal was a great device for work-related video calling but its usefulness declined when I no longer worked from home

On the other hand, I'm a daily active user of the Ray-Ban smart glasses. I already had to wear glasses to correct my eyesight, so I could immediately experience the benefits in upgrading from a normal pair to a smart one. All of a sudden, I could use them to make phone calls and listen to music and sometimes even take photos or ask the Meta AI assistant to give me the weather.

Ray-Ban | Meta — I’m a huge fan of Ray-Ban Meta’s ability to make calls or play music via Spotify

Given the above, I predict that the Rabbit R1 and other generative AI devices coming this year will also struggle to offer anything significantly different from traditional mobile computing, with their capabilities feeling more like a side-step rather than a leap forward. In part, this also comes down to the technology itself. Generative AI is still in beta territory: great for experimentation and amazing at specific use cases, but incapable to reliably power the kind of general-purpose experiences that people expect out of an everyday mobile computing device.

In fact, it seems consumers are becoming increasingly wary of the AI for everything approach that many tech companies are taking. And the problems aren’t just limited to hardware. Tome is a buzzy app that promised in 2022 to reimagine the way we build presentations. It was a hit initially, with millions of people willing to part with $16 a month to play around with prompts that would result in presentations. But the novelty quickly wore off as people struggled to answer the simple the question of "why do I need this and how do I use it?”

This is compounded by the fact that many of these apps or gadgets rely on generative AI as a selling point alone, without offering a truly innovative or necessary function. As a result, consumers are starting to suffer from AI fatigue, with many seeing these devices as gimmicky and unnecessary.

My manager (and Synthesia’s CEO and co-founder) Victor Riparbelli has a name for this phenomenon: AI tourism. It works like this: consumers get excited about a new AI app or device. They try it for a few week or a month, and get disappointed by its lack of utility. They then move on to the next hyped-up thing, leaving the companies behind these products with a revenue graph that looks like an inverted letter V.

So, what does the future hold for consumer AI devices? It's clear that a shift in focus is needed. Rather than trying to force AI into every product, companies should instead look at how this technology can genuinely improve people's lives. This could mean developing AI that enhances existing products (glasses or watches are good places to start), making them smarter and more efficient. Or it could mean creating entirely new categories of devices that solve real-world problems. Either way, the key to success will be in demonstrating clear value to the consumer.

Until then, it seems the market for consumer AI devices will continue to be a challenging one, with many products struggling to find their place in an increasingly crowded and skeptical market.

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