by The new year is almost upon us, which means it’s the perfect time to look at the tech trends that will shape 2024. Generational AI was the story of 2023, and just because the clock strikes midnight on January 1, doesn’t that means it will be no less important.
Look for generational AI, and AI in general, to continue to drive much of the conversation in the coming year. It won’t just be about new models and companies joining the AI arms race, though. Talk will focus more on how companies are generating revenue from their early generation AI investments.
But AI isn’t the only one that will make waves in stories. Augmented and virtual reality will also take center stage when Apple (AAPL) releases its Vision Pro headset in early 2024, kicking off a show with Meta (META).
Autonomous vehicle technology will also gain attention in 2024, as companies like Tesla ( TSLA ) and GM ( GM ) face criticism over their self-driving capabilities and more automakers deploy advanced driver assistance features.
It is also certain that there are stories that explode on the scene that we cannot understand even today. Who could have known in 2022 that generational AI would be the technical story of 2023? With that said, here are some of the biggest themes you can look forward to in 2024.
AI gets personal
Generative AI stole the spotlight in 2023, and that will roll right into 2024 with an added twist: Those powerful AI capabilities will become more available on your PCs and smartphones.
Intel (INTC), AMD (AMD), and Qualcomm (QCOM) are already talking about the so-called AI PC, or personal computers with the ability to run AI generation apps. And we’ll see even more of them in 2024. All three companies have already introduced chips capable of on-board AI processing, and Google’s (GOOG, GOOGL) Pixel 8 Pro is running its next-generation Gemini Nano AI model part of that company. And the number of devices running next generation AI on board will only increase from there.
Locally generated AI apps will provide consumers with a greater sense of privacy and security, since the platforms won’t have to send user data to the cloud to do things like perform searches or organize information.
Apple could also jump on the AI generation bandwagon. During the company’s Q4 earnings call, CEO Tim Cook outlined how Apple already uses AI technologies across several of its offerings including Live Voicemail and fall detection. Cook also specifically mentioned that Apple is investing in its own AI generation capabilities, which could mean a smarter Siri.
“We’ll see more AI with Apple talking about generative AI built into Siri,” explained Deepwater Asset Management managing partner Gene Munster. “That, from a consumer and stock perspective, is something I think would be positive for Apple shares next year.”
Meanwhile, investors will be looking for returns on AI Big Tech investments from the previous year.
“They need to start driving incremental revenue,” explained Patrick Moorhead, CEO and principal analyst at Moor Insights & Strategy. “AWS, Azure, Google Cloud, Oracle Cloud, IBM Cloud … my expectation is that people will be buying and paying money for these incremental services.”
Mixed reality faces its biggest test
Yes, AI will continue to drive headlines in 2024, but there could be one more story against the bonanza of artificial intelligence: Apple’s Vision Pro headset. The augmented/virtual reality “spatial computer,” as Apple refers to it, will debut next year.
The $3,499 Vision Pro is Apple’s first foray into a new product category since it debuted the Apple Watch in 2015. I was blown away when I tried an early version of the Vision Pro in June during the Worldwide Developers Conference Apple. The technology felt ahead of what competitors such as Meta had to offer at the time.
Meta is the AR/VR headset market leader thanks to its Quest headsets and limited competition, but its Reality Labs division, which produces the Quest devices, loses billions of dollars every year.
If Apple is going to pull off the Vision Pro, it will have to convince consumers that they need the headset, something the Meta struggled with.
“I think it will take five or eight years to gain traction, but I think so [the Vision Pro] it will ultimately be an exciting part of consumer technology,” said Munster.
Self-driving cars keep rolling
Autonomous cars have faced several obstacles in 2023 including GM suspending its self-driving taxi business Cruise after a human vehicle was towed. Elon Musk’s Tesla, meanwhile, was forced to issue an over-the-air update to 2 million vehicles on the road in the US to address concerns that the company’s cars did not warn people about how to use its advanced driver assistance technology correct.
According to Moorhead, the automotive and technology industries underestimated how difficult it would be to set up autonomous vehicles on any scale.
But there’s still plenty of interest in the technology, and there will be no shortage of autonomous ads throughout 2024 starting at the Consumer Electronics Show next month.
Nvidia, Qualcomm, Ford, BMW, Mercedes, Honda, Toyota — they are all working on advanced driver assistance technologies, leading the way in self-driving vehicles.
Companies, however, may begin to temper expectations about when fully self-driving vehicles will finally hit the road. It is unlikely that many will predict that the technology is only a few years away.
All that said, if 2024 is anything like 2023, we’re in for another wild ride.
Daniel Hawley He is the technology editor at Yahoo Finance. He has been covering the tech industry since 2011. You can follow him on Twitter @Daniel Howley.
Click here for the latest technology news that will impact the stock market.
Read the latest financial and business news from Yahoo Finance
