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RESEARCH REPORT

AI integration: Taking AI devices from hype to habit

As AI integration races ahead, a critical "engagement gap" between promise and perceived value looms. Bridge it with these 5 strategies and unlock sustainable growth in the AI era.

10-minute read

January 6, 2025

In brief

  • AI and generative AI offer boundless potential to reimagine product design and consumer experiences.

  • Consumer technology companies are launching AI-integrated devices rapidly, but sales are lagging expectations, revealing an engagement gap between promises and perceived value.

  • Bridging this gap requires a strategic, consumer-first approach that aligns technology with real needs. To succeed, companies should go back to basics.

13%

of consumers say they're always keen to use new technology products as soon as they launch.

71%

of consumers report being confused by the terminology used to explain features or benefits.

39%

of consumers trust companies to have good intentions, and 43% trust them to make honest claims.

31%

respondents said they modified a tech device to extend its lifespan, improve its performance or repurpose it.

The AI revolution: Promise vs. reality

The consumer tech industry has always been a pioneer, shaping how we live, connect and engage. Yet, the promise of AI and generative AI isn’t translating into the sales expected. Ambitious launches haven't boosted PC shipments or smartphone recovery, highlighting a disconnect between innovation and consumer adoption, known as the engagement gap. This gap arises from unmet consumer expectations, where the benefits of AI often seem unclear or unconvincing. To bridge this gap, it's not enough to innovate; companies need a strategic, consumer-first approach that delivers clear, tangible value.

E = F (adoption + expectations) sales
E = F (adoption + expectations) sales

Bridging the engagement gap: Why technology isn’t enough

To succeed, companies should go back to basics—designing and marketing technology for consumers, not at them.  This means aligning with consumers across five key points:

01

Secure broad appeal by defining what "good" looks like

Many products are marketed as "game-changers" but fail to communicate how they enhance daily life. For example, AR and VR devices often remain niche, leaving consumers unsure of their practical value.

To succeed, companies should define what "good" means by balancing widespread appeal with personal relevance. Communicating clear, practical benefits ensures consumers understand how these products fit into their routines and deliver meaningful value.

02

Simplify complexity to make desired features user-friendly

Devices are often promoted based on their technical sophistication, assuming immediate consumer acceptance. However, 20% of consumers prefer a cautious approach, with premium pricing further discouraging adoption, especially when the value proposition is unclear.

To tackle this challenge, companies must simplify features such as easier setup or energy efficiency, emphasizing practical benefits. That’s key to reducing the learning curve and making the technology more accessible.

03

Surprise and delight with disruptive, user-centric innovation

Many innovations fail to connect with real-world needs, with only 13% of consumers eager to adopt new technology at launch.

To overcome this resistance, companies need to focus on innovations that enhance daily experiences without overwhelming consumers. Simplifying disruptive features is key to reducing consumer hesitation and fostering a sense of familiarity, which leads to higher engagement and loyalty.

04

Market in a transparent, relatable and human way

In the rush to appear revolutionary, consumer technology companies sometimes overpromise and underdeliver. Nearly seven in 10 (71%) consumers report confusion over the terminology used to explain features. Effective marketing should create an emotional connection, making consumers feel the product is essential to their lives.

Transparent and relatable marketing builds trust and emotional resonance, making consumers more likely to see the value and integrate the technology into their lives.

05

Make trust your competitive edge

Connected devices generate a vast amount of personal data, increasing cybersecurity risks. With only 39% of consumers trusting companies to have good intentions, robust and visible security measures are crucial to build consumer trust and ensure widespread adoption.

Companies have strong incentives to adopt a proactive approach in this area: It can solidify consumer trust, drive differentiation in a competitive market and strengthen their brand reputation.

The road ahead: Redefining success in the AI era

Success in today’s consumer technology industry requires more than flashy marketing campaigns. It demands a renewed focus on long-term engagement, where technology drives reinvention and personalization transforms consumer connections. For new products to succeed, companies must prioritize consumer needs and find innovative ways to engage them meaningfully. By minding the engagement gap and prioritizing consumer needs, companies can take AI devices from hype to habit and ensure they become an indispensable part of their daily lives.

Discover how to bridge the engagement gap and reimagine consumer success with our video series on Sales and Marketing strategies for consumer tech:

WRITTEN BY

Jacquelyn Hontalas

Managing Director – Song, High Tech, North America

Tawfik Jarjour

Senior Manager – Strategy & Consulting, High Tech, Global

Matthew Haggerty

Manager – Research, High Tech, Global