In November 2023, a technology startup featuring the talents of a star-studded line-up of executives and board members launched a wearable that had the world talking.
The company, Humane, and its product, Pin - a small device meant to be worn over clothing - gave us a glimpse of a potential smartphone-less future. The small device powered by OpenAI's ChatGPT uses a laser projection system to display text and monochromatic images on a user's hand like a hologram.
Apart from the hardware powering the device, Pin offers no screen and relies almost entirely on voice to interact with the user. While the device is still new, the potential it promises for the future of natural computing is exciting. This leads us to the question, is there a market for AI-enabled wearables?
The current trends
According to Acumen Research, the wearable market is starting to see an increasingly growing trend of AI integration.
In 2022, the AI wearable market size was capped at $24.4 billion and is expected to grow at an annual compound growth rate of 26.7 percent from 2023 to 2032, i.e. $252.4 billion.
AI is increasingly being integrated into smartwatches, AR glasses, and fitness trackers. According to the report, there is a demand from consumers for holistic devices that not only help them stay connected but offer other experiences such as health monitoring, real-time data analysis and personalized user experiences.
When asked if headsets make the cut, Humane co-founder and President, Imran Chaudhri vehemently opposed the notion of upcoming devices like the Apple Vision Pro, saying that, "the future is not on your face", so where is the future then?
The drivers for growth
According to Acumen Research, the biggest driver of growth will be the rising adoption of the Internet of Things (IoT), an all-in-one acronym for physical hardware devices that have the capability to connect to the internet and exchange data between other devices and services.
Two of the biggest technologies in the field of IoT that make it possible are Machine Learning and Conversational Artificial Intelligence. This helps devices not only gather data and analyze it more efficiently but also respond to the user in natural language, making it easier to understand and operate.
Coupled with advancements in sensors, batteries and materials used in making wearable devices, these trends will act as the biggest drivers for growth.
The problems
The first problem is kind of obvious, data collection and privacy. Seeing as how world governments are already putting plans in place to regulate AI, concerns over data collection and transparency will be the biggest obstacles these devices will face.
The second problem is the high cost of these wearables, limiting the market to select users, mostly first adaptors or technology enthusiasts. Coupled with hardware shortcomings such as limited battery life, there are a few challenges to overcome.
The future
Having said that, the fairly nascent industry still has a ton to offer for both established companies and start-ups. Healthcare is tipped to be the largest avenue for growth, with increasing demand for easier-to-operate and remote monitoring systems, along with applications in disease prevention.
The industrial sector is also ripe for disruption, with enterprises looking to bolster productivity and safety with automated services and hardware.
The integration of 5G with AI will enable faster network speeds and data processing along with seamless connectivity with other devices increasing their effectiveness.
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