Humane shifts focus to AI software after wearable struggles

The news: Humane, maker of the beleaguered Ai Pin wearable, is pivoting its technology into a software-as-a-service (SaaS) offering.

• Humane is marketing the Ai Pin’s operating system, CosmOS, as a feature for cars, smartphones, PCs, and smart home devices.
• CosmOS works as an AI-powered voice assistant that reads emails and text messages, sets event reminders, provides restaurant recommendations, and controls smart home settings.

Failure to launch: In October, Humane slashed the price of its Ai Pin to $499 from $699 after returns outpaced sales. The device still requires a $24 monthly wireless subscription.

• Reviewers of the Ai Pin have criticized its buggy responses, tendency to overheat, and other technical issues.
• Humane reportedly started looking for a buyer within a month of the Ai Pin’s April release.

Looking to evolve: Although Humane CEO Bethany Bongiorno said that no first generation “is perfect, nor is it ever the complete vision,” the company hasn’t produced a next-gen product.

• Instead of revamping the wearable, Humane is separating its technology from the product, allowing it to stand on its own.
• Rebranding itself as an AI software company could help Humane focus its spending on model improvement and avoid the costs of designing, manufacturing, and selling hardware.

Who will use the software? The company’s announcement video for CosmOS shows it being used to ask for driving directions or change a smart home’s thermostat. However, the car’s steering wheel logo is blurred out and the device’s design is obscured.

• Humane seems to be pitching an idea for where the software could be used, but concrete hardware partnerships have yet to be announced.
• Flaws with the Ai Pin’s software were part of the wearable’s problem, so marketing the technology on its own might be a hard sell.

Our take: Voice assistants can be difficult to monetize and haven’t contributed big returns to brands like Apple, Amazon, and Google, putting Humane on an uphill battle to find its niche.

Licensing CosmOS to third parties is a start, but it’ll need to demonstrate how its software could outperform Alexa or Siri.

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