Preview: AI to dominate this year's CES, even without OpenAI's Altman on hand

RAYBAN SUN OPTICS INDIA Pvt

04/01/2024 19:24

By Max A. Cherney and Abhirup Roy
       SAN FRANCISCO, Jan 4 (Reuters) - OpenAI boss Sam Altman
will not appear at the CES trade show in Las Vegas next week.
But the generative artificial-intelligence fever his startup set
off last year will be on full display as gadget makers race to
find consumer uses for the technology.
    In devices for the visually impaired, and safety systems
involving guns at schools, to facial-recognition software that
can assess vitals, and cabin-monitoring systems inside
autonomous cars, dozens of companies have planned announcements
for the show about how they are building AI into their gadgets.
    CES 2024, formerly known as the Consumer Electronics Show,
runs Jan. 9-12. 
    OpenAI's influence at the show despite Altman's physical
absence is reminiscent of Apple  AAPL.O  and its founder Steve
Jobs, whose clout was felt despite him avoiding the show, with
many firms jockeying to display gadgets compatible with the
company's sleek products.
    Altman is widely regarded as the poster child for the AI
frenzy that has gripped the tech industry for the past year. He
made headlines in November when he was briefly ousted by the
ChatGPT maker's board, and reinstated days later after more than
700 employees threatened to quit and join OpenAI investor
Microsoft  MSFT.O  in solidarity.
    Among other projects, OpenAI is working on a secretive AI
hardware project with famed former Apple designer Jony Ive,
according to media reports.
    Funding for generative AI projects exploded last year,
surging more than fivefold to $23.78 billion through the
beginning of December from 2022, according to PitchBook data.
    "It's the year of AI in everything," said Maribel Lopez,
tech analyst at Lopez Research. "If you don't have AI in your
product, don't show up, it's not worth talking about."
    Germany's Bosch is expected to showcase a near-invisible
gun-detection system that will pair video and audio AI for
proactive security involving firearms at schools. Japan's NEC
 6701.T  will unveil AI software that enables mobile devices to
analyze face patterns and pupil conditions to estimate human
vitals and mental state.
    A slew of companies is expected to show off how using AI in
vehicles is making them smoother and safer for drivers through
better in-vehicle virtual assistants and cabin monitors.
    The new focus area for automakers after years of investment
into autonomous technology that used AI is technology that
allows a "hyper personalized" experience while buying and
driving cars, said Akash Arora, a managing director at Boston
Consulting Group.
    "They're trying to figure out 'if I could get to this level
of customer experience it can really differentiate me in the
market,'" he said of companies in the auto industry.
    For instance, Cerence  CRNC.O , which makes AI-powered
virtual assistants, is set to announce a partnership with
Volkswagen  VOWG_p.DE , and Israel-based Cipia  CPIA.TA  is
expected to unveil a system that monitors signs of distraction
and drowsiness in drivers.
    Many automakers are also adopting AI in various stages of
production to reduce costs, said Wendy Bauer, vice president of
automotive and manufacturing at Amazon Web Services  AMZN.O ,
which counts BMW  BMWG.DE  and Toyota  7203.T  as customers. AI
can help carmakers save money by speeding up vehicle development
and ensuring better quality checks during manufacturing, she
said.
    PC and smartphone makers are also likely to showcase how
their products use AI, which chipmakers including Intel  INTC.O 
and AMD  AMD.O  are betting will offer a new revenue stream.
Microsoft said on Thursday that PCs with a new AI button on the
Windows keyboard will be on display at the show.
    But it is not clear whether consumers will pay extra for AI
capabilities on their computers because these developments
perform less obvious tasks than OpenAI's ChatGPT bot.
    "Consumers love ChatGPT, but the consumer benefit of having
it on a device isn't clear," said Jay Goldberg, chief executive
of D2D Advisory. "That's why everyone is going to talk about it
- because everyone is scrambling for the consumer utility."

 (Reporting by Max A. Cherney and Abhirup Roy in San Francisco
Editing by Sayantani Ghosh and Matthew Lewis)
 ((Max.Cherney@thomsonreuters.com
+1 415 404-2697;))