The new year is nearly upon us, which means it’s the perfect time to look ahead to the tech trends that will shape 2024. Generative AI was the story of 2023, and just because the clock strikes midnight on Jan. 1, doesn’t mean it will become any less important.
Look for generative AI, and AI in general, to continue to drive a huge portion of the conversation in the year ahead. It’s not just going to be about new models and companies joining the AI arms race, though. Talk will increasingly focus on how companies are generating revenue from their early generative AI investments.
But AI won’t be the only story making waves. Augmented and virtual reality will also take center stage when Apple (AAPL) releases its Vision Pro headset in early 2024, setting up a showdown with rival Meta (META).
Autonomous vehicle technology will also get plenty of attention in 2024, as companies like Tesla (TSLA) and GM (GM) face criticism related to their self-driving capabilities and more automakers deploy advanced driver assistance features.
There are also sure to be stories that explode onto the scene that we can’t even fathom today. Who could have known in 2022 that generative AI would become the tech 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 increasingly be available on your PCs and smartphones.
Intel (INTC), AMD (AMD), and Qualcomm (QCOM) are already talking up the so-called AI PC, or PCs with the ability to run generative AI 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 that company’s next-generation Gemini Nano generative AI model. And the number of devices running on-board generative AI will only expand from there.
Local generative AI apps will provide consumers with a greater sense of privacy and security, since the platforms won’t need to send user data to the cloud to do things like perform searches or organize information.
Apple could also jump on the generative AI bandwagon. During the company’s Q4 earnings call, CEO Tim Cook laid out how Apple already uses AI technologies across a number of its offerings including Live Voicemail and fall detection. Cook also specifically mentioned that Apple is investing in its own generative AI capabilities, and that could mean a smarter Siri.
“We will see more AI and Apple talking about generative AI built into Siri,” explained Deepwater Asset Management managing partner Gene Munster. “That’s, from a consumer and a stock perspective, something that I think would be positive for Apple shares next year.”
Investors, meanwhile, will be looking for returns on Big Tech’s AI investments from the prior year.
“They need to start driving incremental revenue,” explained Patrick Moorhead, CEO and chief analyst at Moor Insights & Strategy. “AWS, Azure, Google Cloud, Oracle Cloud, IBM Cloud … my expectation is that you’re going to have people actually buying and paying money for these incremental services.”
Mixed reality faces its biggest test
Yes, AI will continue to drive headlines in 2024, but one other story might just rival the artificial intelligence bonanza: Apple’s Vision Pro headset. The augmented/virtual reality “spacial computer,” as Apple refers to it, will make its debut next year.
The $3,499 Vision Pro marks the first time Apple has entered 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 Apple’s Worldwide Developers Conference. The technology felt as though it was worlds ahead of what rivals like 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 each year.
If Apple is going to make the Vision Pro a hit, it will need to convince consumers that they need the headset, something Meta has struggled with.
“I think it’s going to take five to eight years to gain traction, but I think [the Vision Pro] is going to ultimately be an exciting part of consumer tech,” said Munster.
Self-driving cars keep rolling
Autonomous cars faced a number of setbacks in 2023 including GM suspending its Cruise self-driving taxi business after a vehicle dragged a person. 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 didn’t warn people about how to properly use its advanced driver assistance technology.
According to Moorhead, the automotive and tech industries underestimated how difficult it would be to get autonomous vehicles up and running at any scale.
But there’s still plenty of interest in the technology, and there will be no shortage of autonomous announcements throughout 2024 starting at the Consumer Electronic Show next month.
Nvidia, Qualcomm, Ford, BMW, Mercedes, Honda, Toyota — they’re all working on advanced driver assistance technologies, which are a lead-in to self-driving vehicles.
Companies may, however, begin tempering expectations as to when full self-driving vehicles will eventually hit the road. Predictions that the technology is only a few years away are likely to be few and far between.
All of that said, if 2024 is anything like 2023, we’re in for another wild ride.
Daniel Howley is the tech editor at Yahoo Finance. He’s been covering the tech industry since 2011. You can follow him on Twitter @DanielHowley.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
