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Artificial intelligence (AI) was the buzzword of 2024. We saw it slapped onto everything from phones and laptop keyboards to refrigerators. The hype brought a wave of AI gadgets – hardware built around generative AI, promising all sorts of futuristic features.
Do you remember the Humane AI Pin and Rabbit R1? Both were hyped-up, VC-funded products that promised to do way more than your smartphone. Both flopped: Humane began searching for a buyer, while Rabbit R1 faced accusations of being a scam.
That said, 2024 wasn’t bad for all kinds of AI hardware. Nvidia’s Blackwell B100 and B200 GPUs put the tech giant miles ahead in AI and turned it into one of the world’s most valuable companies.
But the consumer-focused AI hardware didn’t fare so well. So, what about 2025? Will the trend continue?
This is the question we try to answer in this article.
Key Takeaways
- AI consumer gadgets flopped in 2024 due to overpromising, high prices, and lack of real-world utility, with devices like the Humane AI Pin failing to impress.
- Successful AI hardware must solve real problems, integrate seamlessly into daily life, and offer clear value, not just flashy promises or gimmicks.
- Embedding AI in existing devices like PCs or smart glasses shows promise, as seen with Microsoft’s AI PCs and Meta’s Ray-Ban upgrades.
- The future of AI hardware lies in practical applications, from consumer tech to industrial uses, where clear ROI and enhanced workflows drive adoption.
Why Did AI Consumer Hardware Flop in 2024?
To succeed in any market, you must offer consumers value, solve an existing problem, or create a habit. Every consumer AI gadget launched in 2024 failed to do so, with most brands making tall promises but failing to deliver.
Let’s dive in.
The Curious Case of the Humane AI Pin
Humane seemed to have gotten everything right – a strong sales pitch, experienced founders (former Apple employees), and backing from some of the biggest names in tech. They raised $230 million from heavyweights like Sam Altman, Marc Benioff, Tiger Global, SoftBank, Qualcomm, Microsoft, LG, Volvo, and Salesforce.
Humane made bold claims about what its device could do. The AI Pin was supposed to be a phone without a screen, replacing apps and keyboards with an AI assistant powered by its custom operating system, CosmOS. Want to make a call, send a text, calculate a tip, jot something down, or find out the population of Helsinki? Just ask the Pin.
The reality, however, was less impressive. Its gesture-based controls and monochrome green laser projector were difficult to use, especially in bright environments, and there was a steep learning curve.
The AI assistant was slow and often wrong, and the device had poor battery life – which later became a safety hazard when units started catching fire.
In the meantime, Humane launched the product at a staggering $699, plus a $24 monthly subscription. For comparison, the Google Pixel 8a starts at $499 and is often available for even less. Not only does it offer best-in-class AI integration but also access to Google’s top AI model.
Plenty of other phones out there cost much less and do everything the AI Pin promised to do, but better and more reliably.
Lars Nyman, Chief Marketing Officer at CUDO Compute, told Techopedia:
“In a world where smartphones already do almost everything except brush your teeth, it is hard to justify a $700 device whispering pseudo-intelligent suggestions in your ear.”
The Failure That Was Rabbit R1
While the Humane AI Pin was at least a finished product that fell short of its promises, Rabbit R1 was all talk and no substance. The company failed to deliver on most of its claims.
At CES 2024, Jesse Lyu, the CEO and founder, hyped the device as a super-smart, ultra-helpful AI assistant. Unlike a typical chatbot, the $200 Rabbit R1 was supposed to do almost everything your phone could, only faster.
But the final product was nothing like what was promised. Over 100,000 people who preordered it based on flashy demos and bold claims were left bitterly disappointed.
Nyman said:
“The Rabbit R1 and the Humane AI Pin were tech fever dreams that missed the point. They failed to solve problems that people truly care about. The AI Pin’s ‘Dick Tracy but make it awkward’ concept fell flat because it overestimated how much consumers want another gadget tying them to their digital lives.”
What Do We Want to See From AI Hardware in 2025?
If last year’s gadgets taught us anything, it’s that slapping ‘generative AI’ onto a product and making it a smartphone copycat won’t win over buyers. What might actually work is integrating AI into things people already use.
Take AI PCs, for example, that emerged in 2024. Microsoft introduced the first of these with its latest Surface range, featuring NPUs, CPUs, GPUs, Microsoft Copilot, and even a dedicated Copilot key on the keyboard.
These PCs heavily focus on AI, both in branding and functionality, and this kind of product has a real chance of succeeding. PCs are already a part of everyone’s lives, and with AI more popular than ever, people are likely to gravitate toward a product that combines the two.
Meta’s Ray-Ban smart glasses are another interesting example. Instead of following the crowd, Meta took a different approach by introducing AI-powered upgrades to their Ray-Ban lineup. After missing out on the smartphone revolution years ago, Meta seems to be betting big on AI-enabled glasses as its chance to shape the future of computing.
Kraig Kleeman, the founder and CEO of The New Workforce, told Techopedia:
“AI hardware could make a comeback in 2025, but only if companies change their approach. First, they need to focus on solving specific problems. Don’t just throw tech at people and expect them to figure out how to use it. Create devices that feel essential, designed to fit seamlessly into everyday life.”
Kleeman added: “Integration is critical. If a new device doesn’t work well with the gadgets and systems people already rely on, it’s going to feel like more hassle than it’s worth.”
Beyond consumer-focused devices, AI hardware has much potential in industrial settings. Take Poland-based Cropler, for example. They use AI-powered field cameras to monitor crops, analyzing RGB and NDVI data to assess plant health, growth, and stress conditions in real time.
Nik B., CEO of Cropler, told Techopedia:
“For AI hardware to succeed in 2025, it needs to move beyond novelty and demonstrate clear ROI. We can expect advances in embedded AI, edge computing, and domain-specific applications, where AI enhances existing workflows rather than attempting to completely disrupt them.”
The Bottom Line
AI consumer hardware stumbled in 2024 because it overpromised and underdelivered. Devices like the Humane AI Pin and Rabbit R1 failed to solve real-world problems, offered poor value compared to existing alternatives, and struggled with usability and reliability.
For 2025 to be different, companies must focus on creating AI-powered devices that seamlessly integrate into people’s lives and address specific needs. Success may lie in embedding AI into familiar products like PCs or smart glasses rather than attempting to replace established technologies.
FAQs
Why did AI consumer hardware fail in 2024?
Will AI consumer devices improve in 2025?
What AI hardware trends should we expect in 2025?
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References
- Humane Recalls Charge Case Accessory for Ai Pin Due to Lithium Battery Fire Hazard | CPSC.gov (CPSC)
- Introducing new Surface Copilot+ PCs for Business | Microsoft Devices Blog (Blogs Windows)
- RAY-BAN META AI GLASSES (Ray-Ban)
- Crop Monitoring & Smart Systems for Real-Time Agricultural Management (Cropler)
