This week I have been fascinated by AI-driven hardware products such as Humane and Rabbit R1. In this issue, we will go beyond the hype to focus on clear emerging trends that will reshape the way brands engage with their audiences forever.
Focus On: Brand discoverability and revenue generation through conversational experiences
For many years brands have been focussing on search platforms for discoverability (think Google Search, comparison sites and app stores) and then relied on their websites and apps to bring to life their brand story and sell products and services.
This paradigm is about to be radically reinvented as generative AI gains the ability not only to perform rapid searches and return results in natural language (already a challenge in itself), but also perform actions such as booking a plane ticket or ordering food without requiring the user to open the brand website or app.
These AI assistants are trained to interact with existing interfaces and complete tasks on behalf of users. Imagine a scenario where travel bookings, financial services, or retail purchases are entirely mediated by AI. The direct relationship between consumer and platform is truncated, with AI interfaces standing as the new gatekeeper.
For brands used to the visibility provided by marketplaces and their owned digital channels, this shift will revolutionise traditional strategies for brand recognition and discoverability. If consumers begin to rely on AI assistants for recommendations and decision-making, brands will need to pivot their strategies to ensure they remain on the AI’s radar — not just the consumer’s.
Some ideas on how to prepare for this
Optimize for AI Discoverability
It’s imperative to understand how these AI systems make choices and what data they prioritize. Brands must adapt their online presence and metadata to ensure AI assistants can easily discover and recommend their services.
Get Conversational Now
Conversational interfaces and voice control are proving to be killer apps for AI assistants. Virtual support and buying journeys once considered novelties will soon be must-haves. Audit where conversational AI can plug into your platforms and pilots now to gain valuable experience at an early stage.
Stress Test with Early Adopters
Emerging segments like gamers and young professionals are already starting to experiment with AI devices. Identify and engage these early adopters to pressure test your services’ integration with conversational AI in the most demanding use cases. Surface capability gaps early.
Build AI Adaptability
Fixed capabilities will quickly become outdated. Architect flexible frameworks to rapidly integrate and iterate the latest AI features. The winning brands will pivot towards modular tech architectures now in order to enable a change-ready culture.
Sell Benefits Over Tech
Avoid getting caught up in an AI features arms race. Ground capabilities in tangible consumer benefits like effortless buying journeys, interactive advice and predictive personalization. Deliver those better through AI, but do not put technology before the problem by sprinkling AI everywhere.
Spotlight On: Humane and Rabbit
Humane and Rabbit R1 are two AI-powered devices that aim to replace smartphones and their clutter of apps. Humane’s AI Pin is a wearable device that clips onto your clothes and lets you interact with a voice assistant and a holographic display. Rabbit R1 is a pocket-sized device that uses a natural language operating system and a Large Action Model to perform tasks on your behalf, such as ordering food, booking a ride, or playing music.
Whilst it is hard to see how they can succeed against incumbent tech players, it is worth watching their product videos to visualise the change ahead of us.
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That’s all for this week. To keep up with the latest in generative AI and its relevance to your digital transformation programs, follow me on LinkedIn or subscribe to this newsletter.
Disclaimer: The views and opinions expressed in Chronicles of Change and on my social media accounts are my own and do not necessarily reflect the official policy or position of S&P Global.