The new year is almost upon us, which means it’s time to look at the technology trends that will shape 2024. Generative artificial intelligence was the story of 2023, and just because the clocks hit midnight on January 1 doesn’t mean it will shape 2024. its importance will decrease.
Look for generative AI, and AI in general, to continue driving a large portion of the conversation next year. But it won’t just be about new models and companies joining the AI arms race. Conversations will increasingly focus on how companies generate revenue from their initial productive AI investments.
But artificial intelligence won’t be the only compelling story. When Apple (AAPL) launches its Vision Pro headset in early 2024, augmented and virtual reality will also be at the forefront, setting up a showdown with rival Meta (META).
Autonomous vehicle technology will also get a lot of attention in 2024, as companies like Tesla (TSLA) and GM (GM) face criticism for their self-driving capabilities and as more automakers roll out advanced driver assistance features.
It is also certain that there will be stories that come to the stage that we cannot comprehend today. Who knew that generative AI in 2022 would be the tech story of 2023? With that said, here are some of the biggest themes you can look forward to in 2024.
Artificial intelligence is getting personal
Generative AI attracted attention in 2023, and this will be reflected in an additional development towards 2024: These powerful AI capabilities will be increasingly available on your PCs and smartphones.
Intel (INTC), AMD (AMD) and Qualcomm (QCOM) are currently talking about computers that can run productive AI applications, called AI PCs. And we will see more of these in 2024. All three companies have already released chips with built-in AI processing capability, and Google’s (GOOG, GOOGL) Pixel 8 Pro runs the company’s next-generation Gemini Nano generative AI model. And the number of devices running built-in generative AI will only increase from now on.
Native generative AI applications will provide consumers with a greater sense of privacy and security, as platforms will not need to send user data to the cloud to do things like search or organize information.
Apple may also jump on the productive AI bandwagon. During the company’s Q4 earnings call, CEO Tim Cook explained how Apple is already using AI technologies in a variety of its offerings, including Live Voicemail and fall detection. Cook also specifically noted that Apple is investing in its own generative AI capabilities, which could mean a smarter Siri.
“We’re going to see more talk about AI and the generative AI built into Apple’s Siri,” said Gene Munster, managing partner at Deepwater Asset Management. “From a consumer and stock perspective, this is something that I think will be positive for Apple stock next year.”
Meanwhile, investors will be looking for year-over-year returns from Big Tech’s AI investments.
“They need to start growing their revenue,” said Patrick Moorhead, CEO and principal analyst at Moor Insights & Strategy. “AWS, Azure, Google Cloud, Oracle Cloud, IBM Cloud… My expectation is that people will actually buy and pay for these incremental services.”
Mixed reality faces its biggest test
Yes, AI will continue to make headlines in 2024, but another story may rival the riches of AI: Apple’s Vision Pro headset. The augmented/virtual reality “space computer,” as Apple puts it, will be released next year.
The $3,499 Vision Pro marks the first time Apple has entered a new product category since introducing the Apple Watch in 2015. I was pleasantly surprised when I tried an early version of the Vision Pro during Apple’s Worldwide Developers Conference in June. The technology felt like it was much more advanced than what competitors like Meta were offering at the time.
Meta is the leader in the AR/VR headset market thanks to its Quest headsets and limited competition, but its Reality Labs division, which produces Quest devices, is losing billions of dollars every year.
If Apple is going to make the Vision Pro popular, it will need to convince consumers that they need the headset; This is an issue that Meta also deals with.
“I think it will take five to eight years to make progress, but I think [the Vision Pro] Ultimately, it will be an exciting part of consumer technology, Munster said.
Driverless cars continue to advance
Autonomous cars have faced a series of setbacks, including GM suspending its Cruise self-driving taxi business in 2023 after a vehicle dragged a person. Meanwhile, Elon Musk’s Tesla was forced to release an over-the-air update for the 2 million vehicles on the road in the US to address concerns that the company’s vehicles were not warning people about how to properly use advanced driver-assist technology.
According to Moorhead, the automotive and technology industries underestimated how difficult it would be to make autonomous vehicles operational at any scale.
But there’s still plenty of interest in the technology, and there’ll be no shortage of autonomous announcements throughout 2024, starting with the Consumer Electronics Show next month.
Nvidia, Qualcomm, Ford, BMW, Mercedes, Honda, Toyota; all of them are working on advanced driver assistance technologies that lead to autonomous vehicles.
But companies may begin to soften expectations for when fully autonomous vehicles will hit the road. Predictions that the technology is only a few years away will likely be few and far between.
All this means, if 2024 is anything like 2023, we’re in for another wild ride.
Daniel Howley He is the technology editor of Yahoo Finance. He has been interested in the technology sector since 2011. You can follow him on Twitter. @DanielHowley.
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