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If 2023 was the year companies poured money into generative AI, 2024 is the year we expect those investments to start paying off. From Microsoft (MSFT) and Google (GOOG, GOOGL) to Samsung and even Volkswagen and Mercedes, companies are rapidly monetizing generative AI products as consumer and enterprise customer interest in the technology remains hot. .
“We expect 2024 to be a year of increased promotion and early adoption, and 2025-27 will see many key elements converge and expand its capabilities,” said UBS Global Research and Evidence analysts. “We expect this is a time when the market will move forward with further applications to take advantage of this.” Rabo wrote in a note to investors on Monday.
Samsung on Wednesday announced its Galaxy S24 smartphone lineup with the company’s Galaxy AI package, which features generative AI features such as live translation and photo editing features. Microsoft announced Monday that it will begin selling subscriptions for the consumer version of its Copilot AI assistant for $20 per user per month.
The tech giant also said it will open up the enterprise version of Copilot for Microsoft 365 to small and medium-sized businesses. Previously, it only sold its services to companies with 300 or more employees.
Intel (INTC), Nvidia (NVDA), AMD (AMD), and Qualcomm (QCOM) sell chips with their own neural processing units for AI apps. PC manufacturers are joining the race by advertising their laptops and desktops as AI-enabled. And at CES 2024, Volkswagen announced that it will introduce ChatGPT to its in-car voice assistant by the middle of this year.
Now, all companies need is buy-in from consumers.
“Is there a killer app? Is there a demonstrable adaptation or change that will essentially make people pay more? I think it’s something. [companies] will struggle,” Gartner analyst Ranjit Atwal told Yahoo Finance.
But that doesn’t stop companies from betting on what could be the next big technological leap.
time to endure
If you were following the developments at CES 2024 earlier this month, you know that every technology-adjacent company on the planet is using AI as a means of marketing their products.
Whether this technology truly delivers on its promise to change our lives for the better depends on the companies that make the actual AI products.
The challenge for companies, Atwal said, is that generative AI products provide cumulative benefits to consumers, rather than a single wonder app that sells people.
“It’s a combination of factors that make the device easier to use. It increases productivity. So it’s all cumulative,” he said. “It’s very difficult to monetize something that’s cumulative.”
It may be difficult to sell generative AI products to the average consumer, but enterprise customers are already working on it.
According to Yusuf Mehdi, Microsoft vice president and consumer chief marketing officer, 77% of employees at companies who have used the company’s business software Copilot say they never want to stop using it. Microsoft’s Copilot for Microsoft 365 currently costs $30 per user per month, the same price as Google’s own enterprise offering, his Duet AI for Workspace Enterprise.
Microsoft’s Copilot Pro tests consumer appetite for paid generative AI services. So are so-called AI PCs, the PC industry’s marketing name for laptops and desktops with neural processing units designed to power AI applications.
So far, chipmakers such as Intel have said that neural processors will benefit ordinary consumers by running the AI apps they generate on their personal devices rather than in the cloud, helping improve overall privacy and security. ing.
But beyond that, they say we’ll have to wait to see what apps developers create to see what AI PCs can really do.
But according to UBS’s Global Evidence and Research Lab, it’s only a matter of time before consumers get on board.
“We believe the motivations, use cases and technology enablers are: [generative AI] “We are targeting early adoption of edge devices in 2024, with mainstream adoption occurring between 2025 and 2027,” UBS analysts said in a research paper.
“This has the potential to stimulate positive changes in the mix.” [spending on higher priced products] (Increasing requirements for more processing, storage, and upgraded peripherals) Also, replacement cycles occur as new devices increase convenience and enable content creation, productivity, and personalization. There is a possibility that you will. ”
It is now up to technology companies to keep their customers interested in the benefits of generative AI if they want to get something back on their investment.
Daniel Howley I’m the technology editor at Yahoo Finance. He has been covering the technology industry since his 2011. You can follow him on Twitter. @Daniel Howley.
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