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AI Consumer Products Face a 'Stabilization' Period, Experts Say

Artificial Intelligence GenAI Startups Consumer Tech Tech Industry Innovation AI Devices
December 16, 2025
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Reality Check
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Real Impact 7/10

Article Summary

The discussion surrounding consumer generative AI applications reveals a key challenge: their lack of widespread adoption beyond early adopters. While initial excitement surrounded AI-powered gadgets and tools, the market has yet to mature. Experts like Chi-Hua Chien argue that the landscape mirrors the evolution from the early smartphone era, highlighting a need for ‘stabilization’ before truly transformative consumer products emerge. Key to this is the recognition that current consumer AI offerings, largely reliant on smartphones, are too limited. The conversation pivots to the potential of entirely new devices – such as a ‘screenless’ pocket-sized device rumored to be developed by OpenAI and Apple’s former design chief Jonny Ive – and even the utilization of existing technology like smart glasses. Furthermore, analysts express skepticism regarding AI-powered social networks built around interacting with AI bots, suggesting that the core appeal of social connection—interaction with real humans—could be lost. Ultimately, the experts suggest that a shift in device usage and application will be necessary for consumer AI to truly evolve beyond its initial hype.

Key Points

  • Consumer AI applications are in a ‘stabilization’ phase, akin to the smartphone era, requiring more than just new devices for widespread adoption.
  • Current AI consumer products, largely dependent on smartphones, are too limiting and fail to address the core appeal of human interaction.
  • The potential for entirely new devices or the integration of existing technologies like smart glasses could be crucial for the evolution of consumer AI.

Why It Matters

This analysis is critical for anyone involved in the AI industry, particularly startups and investors. It underscores the importance of understanding consumer behavior and anticipating long-term trends rather than simply chasing the latest technological buzz. The ‘stabilization’ period suggests a longer timeline for widespread AI consumer adoption, impacting investment strategies and product development priorities. It’s a reminder that technological innovation alone isn’t enough – a deep understanding of human needs and preferences is paramount.

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