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Why AI gifts are difficult to find this holiday season

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Consumers looking for cutting-edge gadgets powered by generative AI technology may be disappointed this holiday season, as the rollout of GenAI hardware has faced several challenges. Despite the excitement surrounding the launch of OpenAI’s ChatGPT chatbot in November 2022 and the influx of funding into GenAI startups, the actual delivery of new hardware devices has not met expectations.

At the CES trade show in January, high-profile startups like Humane and Rabbit showcased GenAI products promising features such as translation, answering questions, and voice memos. However, reviews of these devices criticized them for being slow and prone to failures, leading to a disconnect between consumer expectations and actual performance.

Industry experts point to several reasons for the lackluster reception of current GenAI devices. Paul Gagnon, the vice president at analyst firm Circana, highlighted the need for more powerful silicon chips to improve performance. Ben Bajarin, CEO of Creative Strategies, noted that consumer confusion about the capabilities of GenAI devices and their high prices have hindered adoption.

Major tech companies like Microsoft, Apple, Intel, Dell, and Lenovo have also entered the GenAI market with new lineups of personal computers capable of GenAI tasks. However, Ryan Reith, a program vice president at IDC, suggested that consumers may not see the necessity of upgrading to these more expensive PCs when they can access similar tools on their current devices.

Despite the challenges faced by the industry, there are still some GenAI devices available for early adopters. The Ray-Ban Meta smart glasses from Meta offer AI capabilities for everyday tasks like taking photos and listening to music. Rabbit’s r1 device has seen improvements after initial criticism, and Bee AI will launch its GenAI device, the Bee, which functions as an advanced digital assistant.

While the potential of GenAI technology is undeniable, widespread adoption may still be several years away. Industry experts predict that it may not be until 2025 that consumers see a significant explosion in GenAI computers, smartphones, and gadgets. In the meantime, companies will need to address performance issues, consumer education, and pricing concerns to drive broader acceptance of GenAI technology in the future.

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