Glimpse Into The Market
As provided in the GM Insights report, the consumer electronics market valued at USD 1 trillion in the base year 2020 is expected to grow at a CAGR of 7% by the end of 2026. The force driving the increase in consumer electronics owes to the continuous investments by industry players in Research and Development for the expansion of new consumer electronic products, such as smartphones, smart wearables, home appliances, and more will drive the market growth.
It could be rightly known that AI has been empowering numerous consumer products by augmenting connected products and smart appliances. The consumer electronics industry is witnessing a great scope owing to the three major innovations that could be named as –
- Advanced Analytics
- Autonomous Business Process
- AI-driven Conversational Interfaces
The Underlying Reasons to Adoption of AI in CE
Let’s take a comprehensive look at why the consumer electronics industry is actively adopting the AI industry –
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Dynamic Consumer Behavior
A huge chunk of people worldwide daily interacts with numerous AI-powered apps and devices. They usually look forward to an equally engaging and better experience while utilizing the other consumer electronics product. This demand from consumers calls for consumer electronics ingrained with AI having emotional abilities to further understand the users’ requirements while also conveying the solutions conversationally. Thus, it has erupted as a substantial challenge for the industry to cash in better, more straightforward, and more customer-driven products powered by AI.
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The Heavy Dataflow
With the increased reliance on advanced techniques to pursue the concept of consumer electronics, there has been a simultaneous increase in data collection. As companies have started tapping the full potential of data, there has been an increment in the colossal repositories of data (images, video, audio files, etc.) that carry the mysteries associated with the desire of the consumers. The data, being most vital to making the neural network work well and making deep learning possible, the data collection and analysis is undoubtedly the colossal challenge in the way. The consumer electronics industry is benefited the most when it has the user data from across social media and other online platforms, which they can exploit by practicing statistical analysis and gaining actionable insights and intelligence from data.
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The Competitive Edge
AI has evolved as a driving force for companies, which they look forward to ingraining and gain a competitive edge over others. Taking the customer experience a level up has ranked in a priority as the customers highly seek devices that are capable of endowing them with a personalized experience in terms of both communication and convenience.
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AI-chipsets Available Easy
The Consumer Electronics sector has made it possible to adopt AI chipsets by making them highly affordable and readily available. Presently, companies worldwide are increasingly embracing these AI-driven chipsets for their products, as they are low-cost, high-performance, and reliable at the same time.
The Intriguing Applications
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Smart Homes:
Artificial Intelligence has made it possible for consumers to take charge of and maintain everything right from the home appliances to the home itself with just the hint of your voice command to help further secure your home. This advanced technology also aids in transforming one’s life to be more accessible, smooth, and efficient than ever before.
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Smart TVs:
Artificial Intelligence has helped internet-connected televisions to reflect a higher level of intelligence. Being driven by AI, the Smart TVs can provide you with many amenities like suggesting movies, TV shows, web series, etc., based on the customers’ viewing habits. AI has facilitated the browsing of social media applications like Instagram, Facebook, and others. It also allows for streaming live videos, email checking and verification, and more.
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Voice-enabled Technology:
Voice assistants have become the next-level AI-powered devices that users are cherishing limitlessly. Being equipped with AI and decked with many languages, the voice-enabled technology has set an exemplary standard in serving even the more impoverished and rural communities.
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Language Translation:
Language barrier spoiling your trip or business?? No worries, when you have AI technology to your rescue. Being powered by AI, the consumer electronics industry has made way for language translation devices, often popular amongst travelers and students.
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Smart Security Systems:
Artificial Intelligence in home appliances is a matter of both comfort and safety. Being capable of using technologies like facial recognition and voice assistants, AI-enabled security systems help locate intruders. Moreover, the AI-driven home appliances use voice recognition facilitating human-to-machine interaction for effective automation of domestic chores.
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Online Shopping:
Online Shopping has become one of the most trendy courses across the globe. Artificial Intelligence assists this arena by providing for algorithms that furnish automatic and logical product recommendations. These recommendations are driven by individuals’ past buying patterns and their product preferences, making up a pleasant shopping experience. A few examples of this can be the digital printing technology for the food and beverages companies, AI technology in apparel and fashion, amongst more.
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Data Protection:
AI possesses an essential place for governments to enhance data protection regulations and practice exemplary regulatory standards, thereby guarding consumers against data breaches. AI-based data protection helps countries take their domestic laws to new security levels by converging the same to universally recognized standards.
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Smart Entertainment Systems:
Artificial Intelligence is tapping the Entertainment Industry’s full potential to advance the content and exhibit it to many audiences. With the media companies indulging in the active use of machine learning, deep learning, and computer vision, they are enabled to present the right content to the right user at the right time. Hence, drawing in more happy and satisfied customers.
The Hurdles Faced By…
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Non-Affordability:
Artificial Intelligence Technology though being very beneficial, finds an obstacle in the form of non-affordability. While on one side, the companies face extreme pressure on product margins, on the other side, there are growing customer expectations and demand for more excellent options. For instance, the users are demanding Smart TVs that are capable of getting connected with the internet and provide for video streaming services, amongst others.
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Sticking to the Technological Revolution:
Technology as a landscape is witnessing change at lightning speed, thereby posing a challenge for the consumer electronics sector to keep up with the technological revolution. Besides, the competition brought in by the niche consumer electronics firms has revolutionized the distribution models by employing advanced strategies like straight-to-consumer, e-commerce-first, and others.
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Increased Risks:
The adoption of Artificial Intelligence indeed calls for high risks in the form of fastly changing consumer preferences towards personalized products, requiring companies to invest more and more to craft experiences found pleasurable by the consumers.
Wrapping Up
Hence, it could be concluded that as the customers’ expectations and preferences evolve, consumer electronics companies strive to provide innovative next-gen products powered by AI and ML. Companies that can contribute substantial value and engaging experiences to the users are likely to flourish, while companies that procrastinate may be meddled by their more active counterparts. Now when you know why AI is actively profused in the consumer electronics sector and its intriguing applications, take this time to draw out any challenge with Teksun’s team of expert professionals. Connect with us today!
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