Meta and other tech giants are racing to establish a market-defining category for AI wearables, but privacy concerns and hardware failures are stalling momentum amid broader skepticism about the technology's practical value.
Meta unveiled its Muse Charm personal agent housing this week, which topped Apple's iOS App Store free apps list. The company continues releasing iterations of Meta Ray-Ban AI glasses at various price points. Apple showcased AI features on the Watch Series 12 designed to listen to conversations. Google, OpenAI and other contenders are advancing their own wearable or wearable-adjacent devices. But the category's growth has collided with a privacy backlash that threatens its viability.
Smart glasses have become flashpoints for surveillance concerns. Users on social media have reported unauthorized photography and video recording by people wearing Meta Ray-Ban glasses, including incidents on dates and at home. Meta's advertising campaign featuring Kylie Jenner filming her everyday life drew additional criticism. The frames earned the label "pervert glasses" online. Meta did not immediately respond to CNBC's request for comment on the backlash.
DA Davidson analyst Gil Luria called the growing resistance to camera-equipped glasses difficult to overcome. "It's done for at this moment," Luria said, noting he gifted the spectacles to his twin teenage boys last year when they were enthusiastic, but "they wouldn't be caught dead in them" now. Meta recently unveiled a camera-free smart glasses option.
The pullback extends beyond Meta. Smart glasses have been banned from gyms and other venues over privacy concerns. Oura, a smart ring maker, delayed its planned initial public offering on Tuesday, citing "uncertainty in the IPO market." But analyst Anshel Sag at Moor Insights & Strategy expressed skepticism about that explanation. "Them jumping out of this IPO is kind of weird," Sag said, adding he believed another factor was behind the decision.
Hardware failures have also undermined confidence in the category. The Humane AI Pin was discontinued last year following poor reviews. The Rabbit r1 personal assistant faced technical issues and lacked distinct advantages over smartphones. Avi Greengart, founder of market research firm Techsponential, noted that expensive wearables with poor performance cannot succeed unless they offer genuinely transformative functionality.
Health-focused wearables, including sleep trackers and accident detection devices, have shown stronger consumer acceptance. Accessibility features on Apple's AirPods are being repurposed as hearing aids. But flashy consumer AI devices remain unproven, Greengart said.