AI Hype Meets Reality

A discussion with a friend about the recent flops of Humane’s AI Pin and Rabbit R1 served as a reminder that focusing on flashy products rather than addressing real user needs can ultimately lead to disappointment.

The Missteps of Hardware-First AI

Both the Humane AI Pin and Rabbit R1 were designed to push the boundaries of what AI devices could do. They promised to free us from the confines of our smartphones by offering dedicated, always-on AI experiences. However, despite the initial excitement, these devices ended up being more about the gadget itself than about creating meaningful benefits for users. Their failure wasn’t because AI isn’t powerful—it was because they missed the mark on what users actually needed.

The lesson is clear: AI should enhance everyday life, not just be a shiny new toy. When product development prioritizes technological novelty over user-centric solutions, it can result in devices that struggle to find a market.

Shifting Focus: Software Over Hardware

In contrast, a clear trend is emerging where companies are betting on software-driven AI solutions rather than standalone hardware. In fact, 8 of the 10 largest generative AI venture deals in early 2024 went to companies building apps or services on top of existing AI models, rather than to new model or hardware developers.

Major tech giants are already embracing this shift:

• Microsoft rolled out AI copilots across Windows, Office, and GitHub, and finally delivered a long-awaited “Recall” feature that lets its Copilot assistant remember personal context on PCs.
• Amazon announced an upcoming Alexa+ upgrade, injecting a sophisticated LLM-based model into its voice assistant to make it more conversational and useful.
• Google unveiled new personalization features for its AI, letting users integrate personal data into AI searches—combining one’s Gmail or search history with its Gemini AI model answers.

A Clear Lesson: Focus on the User

The underlying theme across these developments is a crucial lesson: technology should be designed to serve the user, not just to showcase the latest innovations. When companies like Humane and Rabbit focused more on creating a product than on addressing real-world problems, they ended up missing the mark. Similarly, Apple’s Siri overhaul has struggled because it didn’t have a clear vision of how to deliver tangible benefits to its users.

As a corrective measure after a tense period of delays and internal struggles—where CEO Tim Cook reportedly lost confidence in John Giannandrea’s leadership and generative AI upgrades for Siri were pushed back—Apple is replacing the head of Siri with Mike Rockwell, the former head of Vision Pro development.

Successful AI isn’t just about having the most powerful model or the flashiest device—it’s about making technology that genuinely improves how we live and work. Whether it’s through optimized software or smarter integration of AI into everyday platforms, the future of AI lies in delivering user-centered value.