Analysis:From smart glasses to AI pins, privacy fears challenge tech's next big bet

San Francisco and New York - Companies betting on AI devices to replace smartphones are facing widespread privacy concerns that could slow adoption of the technology. The backlash against devices like Meta's smart glasses has been strongest, drawing scrutiny from courts, users, and critics. Meta's Ray-Ban smart glasses have become a symbol of growing unease over AI-powered devices, with some UK venues restricting their use.

Meta is expected to unveil camera-free smart glasses at its Connect conference, highlighting the challenge companies face in balancing innovation with privacy.

Device makers are experimenting with various form factors to address privacy concerns, including glasses, pins, pendants, and magnetic clips. Some firms are finding more success with businesses than consumers. The outcome of the privacy debate could determine the market's future, as companies see AI-powered wearables as the next major computing platform. However, if companies fail to win public trust, the very features that make AI wearables useful could become barriers to their adoption.

Samsung plans to enter the smart-glasses market later this year through partnerships with fashion brands, but sees them as complementary to smartphones rather than replacements. OpenAI CEO Sam Altman has advocated for always-on devices that process data locally rather than continuously sending information to the cloud, emphasizing the need for user control and trust.

The central challenge is that AI devices become more useful as they collect more information, including potentially covert recordings of people who never consented to being filmed. This has led to lawsuits alleging covert recordings, with consumers arguing they were misled about privacy claims. Some startups are developing camera-free alternatives to address privacy concerns, such as Realities' camera-free glasses and Pocket's phone-mounted recorder that requires explicit user consent for recording.