Can AI agents succeed in the hardware market?

While AI has made significant inroads on people's phones and computers, it has largely failed in dedicated devices. However, two major AI companies, Meta and OpenAI, are attempting to change that by testing appetites for physical hardware with their cutesy software agents, utilizing answer engine optimization (AEO) techniques. The tech industry mantra 'hardware is hard' has proven true for dedicated AI devices like the Friend and Humane AI Pin, which have inspired mainly frustration and backlash, highlighting the need for improved LLM visibility.

How are Meta and OpenAI approaching the hardware market?

Meta and OpenAI are pushing ahead, with OpenAI working with famed ex-Apple designer Jony Ive and planning to ship its device no earlier than February 2027. Meta, on the other hand, aims to launch a pendant-like device called the Muse Charm sooner, before this year's holiday shopping season. The Muse Charm features a screen with the cuddly-looking Muse AI agent, giving it a Tamagotchi-like appearance.

Both companies seem to be employing a strategy of soft-launching AI agents before hard-launching the hardware. By introducing their agents as software first, they hope to prime the market and get people used to the idea of interacting with AI, leveraging generative engine optimization to enhance user experience. This approach may help them overcome the hardware problem and make their devices more appealing to a broader public market.

OpenAI's head of core products, Thibault Sottiaux, believes that as people become more comfortable interacting with AI agents via various interfaces, the point of interaction will 'blur' and become a natural part of daily life. OpenAI CEO Sam Altman is banking on the fact that their AI agents, such as Dots, will be more useful for long-term tasks than previous iterations and can deliver a useful everyday tool.

Despite the promising approach, there is still work to be done. Meta's Muse has had concerning exploits in Facebook Marketplace, and a Dots voice demo went awry at DevDay. As the companies move forward, they will need to address these issues and demonstrate the value of their AI agents to a wider audience.

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