The new year is just around the corner, which means it's the perfect time to look ahead to the technology trends that will shape 2024. Generative AI was the story of 2023, and just because the clock strikes midnight on January 1 doesn't mean it will become less important.
Look for generative AI, and AI in general, to continue to drive much of the discussion in the coming year. However, it's not just about new models and companies joining the AI arms race. The conversations will increasingly focus on how companies monetize their early generative AI investments.
But AI won't be the only story making waves. Augmented reality and virtual reality will also take center stage when Apple (AAPL) releases its Vision Pro headset in early 2024, setting up a showdown with rival Meta (META).
Autonomous vehicle technology will also receive plenty of attention in 2024, as companies like Tesla (TSLA) and GM (GM) face criticism over their self-driving capabilities and more automakers deploy advanced driver assistance systems.
There will certainly also be stories that explode onto the scene that we cannot even fathom today. Who could have known in 2022 that generative AI would become the technology story of 2023? That said, here are some of the biggest themes you can look forward to in 2024.
AI gets personal
Generative AI stole the spotlight in 2023, and it will permeate in 2024 with an added twist: these powerful AI capabilities will be increasingly available on your PCs and smartphones.
Intel (INTC), AMD (AMD) and Qualcomm (QCOM) are already talking about so-called AI PCs, or PCs with the ability to run generative AI apps. And we'll see even more in 2024. All three companies have already introduced chips capable of built-in AI processing, and Google's (GOOG, GOOGL) Pixel 8 Pro runs on that company's next-generation Gemini Nano generative AI model. And the number of devices with built-in generative AI will only increase from then on.
The story continues
Local generative AI apps will provide consumers with a greater sense of privacy and security because the platforms do not need to send user data to the cloud to, for example, perform searches or organize information.
Apple could also jump on the generative AI bandwagon. During the company's Q4 earnings call, CEO Tim Cook explained how Apple is already using AI technologies in a number of its offerings, including Live Voicemail and fall detection. Cook also specifically mentioned that Apple is investing in its own generative AI capabilities, and that could mean a smarter Siri.
"We'll see more AI and Apple talking about generative AI built into Siri," explains Gene Munster, managing partner of Deepwater Asset Management. "That's something, from a consumer and equity perspective, that I think would be positive for Apple stock next year."
Investors, meanwhile, will be looking for returns on Big Tech's AI investments from the previous year.
"They need to start generating incremental revenue," explains Patrick Moorhead, CEO and principal analyst at Moor Insights & Strategy. "AWS, Azure, Google Cloud, Oracle Cloud, IBM Cloud... my expectation is that people will actually buy and pay for these incremental services."
Mixed reality faces the biggest test
Yes, AI will continue to make headlines in 2024, but another story could rival the artificial intelligence bonanza: Apple's Vision Pro headset. The augmented/virtual reality "spatial computer," as Apple calls it, will debut next year.
The $3,499 Vision Pro marks Apple's first foray into a new product category since the debut of the Apple Watch in 2015. I was impressed when I tried an early version of the Vision Pro at Apple's Worldwide Developers Conference in June . The technology felt like it was a world ahead of what rivals like Meta had to offer at the time.
Meta is the market leader in AR/VR headsets thanks to its Quest headsets and limited competition, but its Reality Labs division, which produces the Quest devices, is losing billions of dollars every year.
If Apple wants to make the Vision Pro a success, it will have to convince consumers that they need the headset, something Meta is having difficulty with.
"I think it will take five to eight years before we get traction, but I think we will [the Vision Pro] will ultimately become an exciting part of consumer technology," Munster said.
Self-driving cars keep rolling
Self-driving cars suffered a number of setbacks in 2023, including GM suspending its Cruise self-driving taxi company after a vehicle dragged a person along. Elon Musk's Tesla, meanwhile, was forced to issue an over-the-air update to 2 million vehicles on the road in the US to address concerns that the company's cars were not alerting people to the proper use of its advanced driver assistance technology.
According to Moorhead, the automotive and technology industries underestimated how difficult it would be to get autonomous vehicles up and running at any scale.
But there's still a lot of interest in the technology, and there will be no shortage of autonomous announcements in 2024, starting at the Consumer Electronic Show next month.
Nvidia, Qualcomm, Ford, BMW, Mercedes, Honda, Toyota: they are all working on advanced driver assistance technologies that are a precursor to self-driving vehicles.
However, companies may start to temper expectations about when fully self-driving vehicles will eventually hit the road. Predictions that the technology is only a few years away are probably rare.
All that said, if 2024 is anything like 2023, we're in for another wild ride.
Daniel HowleyClick here for the latest technology news that will impact the stock market. Read the latest financial and business news from Yahoo Finance is the technical editor at Yahoo Finance. He has been involved in the technical industry since 2011. You can follow him on Twitter @DanielHowley.
