Despite the excitement surrounding generative AI, there is no must-have gadget for the holiday season.

• This holiday season, shoppers searching for AI-powered gadgets and gizmos as gifts will have limited options to choose from.
• Although GenAI has attracted attention in Silicon Valley, it has not yet gained widespread adoption.
• Some companies, including Meta, Rabbit, and Bee AI, are providing Black Friday discounts on their portable devices that feature GenAI technology.

This holiday season, shoppers searching for AI-powered gadgets and gizmos as gifts will have limited options to choose from.

Since the launch of OpenAI's ChatGPT chatbot in November 2022, generative artificial intelligence has become a major force in Silicon Valley. While startups have invested billions in developing new GenAI tools and tech giants have spent millions on processors to train AI models, few companies have introduced new hardware that focuses on the latest technology.

At the CES trade show in January, there was a lot of optimism about the potential of GenAI gadgets, said Paul Gagnon, vice president for analyst firm Circana. High-profile startups such as Humane and Rabbit, which marketed their products as able to translate, answer questions, take voice memos, and set alarms, were drawing buzz, Gagnon added.

Despite high expectations, many new GenAI devices failed to meet expectations, with reviewers criticizing their slow performance and high failure rates.

Gagnon stated that since the promises made at the beginning of the year were vague, there has been difficulty in effectively communicating them to consumers.

Ben Bajarin, CEO of Creative Strategies, stated that a significant factor hindering the advancement of GenAI hardware is that current devices are "compute limited," necessitating the use of more potent silicon chips and associated components to achieve improved performance, particularly in comparison to smartphones.

He stated that consumers may find current GenAI devices too expensive and may be unsure of their capabilities.

Smart glasses, like the Ray-Ban ones, usually need a smartphone connection and a good internet connection for their accompanying app, as a poor internet connection can cause performance delays and frustrate users, according to Bajarin.

IDC program vice president for mobile devices Ryan Reith stated that while companies such as HP, Dell, Lenovo, and others have heavily marketed new lineups of personal computers capable of performing GenAI tasks, consumers have not yet responded positively to the sales pitch.

Reith stated that he believes there is no need for consumers to purchase expensive PCs, as they can already access tools like ChatGPT through their current devices.

While GenAI has attracted attention in Silicon Valley, it has not yet been widely adopted, according to Bajarin.

"Although I can recite numerous productivity statistics involving AI usage, it is a minute group of individuals who employ this technology, which is not widespread."

According to Steve Koenig, vice president of research at the Consumer Technology Association, it may not be until 2025 that consumers will experience a significant increase in GenAI computers, smartphones, and new gadgets.

Although Silicon Valley has not experienced a standout year for GenAI hardware, there are a few GenAI devices that early adopters can purchase.

Ray-Ban Meta glasses

In 2023, Meta released the second generation of its Ray-Ban smart glasses, but the company began rolling out GenAI features for the device earlier this year and announced several new AI capabilities at its Connect event in September.

Although the glasses lack augmented reality features, users can utilize the device to capture photos, enjoy music, and obtain information from the Meta AI digital assistant about the things within their view.

The Meta AI digital assistant can be used to recommend a recipe by scanning the shelves in a grocery aisle with the device's mics and camera, according to a blog post by the company.

The Ray-Ban Meta Skyler style of glasses is currently being sold at a discount of 20% on Facebook and Instagram through Dec. 2. As a result, a pair of these glasses will cost $239.20 instead of $299 if purchased online.

Rabbit r1

The orange, miniaturized tablet with a playful aesthetic resembling Nintendo Switch more than Apple iPad is the Rabbit r1, which costs $200.

The r1, equipped with a camera and dual mics, can perform tasks such as recording audio clips, setting timers, and even helping users recall information from past conversations, search results, and voice recordings. However, since its release in March, the device has faced criticism from reviewers who found it struggling with various tasks and lacking the advanced features of smartphones that can perform many of the same functions.

Jesse Lyu, CEO of Rabbit, informed CNBC that the startup has made significant improvements to the user experience based on feedback and has released numerous updates.

Although Rabbit received negative feedback, the company exceeded its sales expectations by selling over 100,000 r1 devices, and the return rate is less than 5%, which is impressive for a first-generation product, according to Lyu.

Currently, rabbit is offering a deal to shoppers: they can get free shipping or a $15 discount if they order an r1 by Dec. 4.

Bee

The startup Bee AI will start selling its GenAI device, the Bee, on Friday after raising $7 million in funding in July.

The Bee, an internet-connected smartwatch, functions like an advanced digital assistant. Its dual mics allow it to listen and analyze people's voice memos and conversations to provide summaries and to-do lists, as CEO Maria de Lourdes Zollo of Bee AI told CNBC.

The Bee app can be integrated with health-care tools and people's Google and Gmail accounts to generate personalized summaries and action items, Zollo said. Although the startup offers a Bee app for the Apple Watch, the core Bee device is better at understanding voices in loud environments.

Zollo stated that for $49.99, shoppers can purchase the Bee and access its fundamental functions. However, to obtain additional features such as enhanced memory or capabilities, a $15 monthly subscription fee is required.

Zollo stated that the device will be shipped in time for Christmas, and Bee is providing shoppers with three free months of the subscription service for Black Friday.

Apple ex-designers introduce Humane AI Pin, a $700 smartphone substitute.