Q3 2024 Gaming Industry Report Released,
View Here

Konvoy's weekly newsletter offers unique insights into video game industry trends and the evolving landscape of venture capital, essential for staying informed in gaming and investment

Augmented AI

Contextual data unlocks personal AI

Augmented AI

Artificial Intelligence (AI) solutions are being developed at a rapid pace, with most focusing on how to increase productivity across enterprise and consumer applications. AI has yet again become the dominant topic surrounding future innovation; 199 of the S&P 500 mentioned Artificial Intelligence on their Q1 earnings calls, which is ~250% higher than over the past five years.

While exploring what this technology suite can provide enterprises in the near term often ranges from reality to folly, often leaning more toward folly, most near-term efforts have revolved around the quest to improve how we search and receive information faster. For consumer applications today, very few of the solutions in the market serve as much more than a search engine replacement, and the information being served back to the user is certainly far from personalized. Therefore, just as when you search on a legacy search engine, the information being returned to users is generalized and rarely caters to the individual.

Over the next 12-24 months, consumers will expect enhanced personalization from the AI systems they regularly interact with. To bridge gap, companies like Humane or Rabbit have tried to build solutions involving an all-day wearable or pocket device that gives any consumer the luxury of having an AI assistant at their fingertips, helping them schedule calls or book restaurants. This is a productive first step, but there are clear signs that an AI-enabled hardware device does not provide sufficient value to the everyday consumer:

  • Humane: Only a month after the launch of its first product, a $699 AI pin, Humane has already begun exploring a sale of the company (CNET).
  • Rabbit: Rabbit has received dramatically underwhelming reviews due to the product struggling with basic tasks. Primarily, the $199 coaster-sized block lacks the processing power to run applications locally, relying instead on cloud-based services (The Verge).

These are novel technologies, but they clearly will not be the end solution to satiate consumer demand for personalized assistance both in knowledge acquisition and in task execution.

The Differentiator: Proactive vs Reactive

Personalized assistants will be a leading cause for consumers to use different elements of the Artificial Intelligence suite in their daily lives. Millennials and Gen Z have a high propensity to engage with voice (emarketer); voice will be a core medium by which users will engage with AI in the future.

Voice is already a preferred medium by consumers today. A recent study reveals that 58% of consumers prefer using voice-activated technology for its ease and convenience in specific tasks, while 54% find it faster than typing or using a touchscreen. Furthermore, 63% of users would embrace voice technology if it matched human capabilities. Notably, over 60% believe that voice assistants are already or will soon be as intelligent and dependable as humans, with 46% anticipating this milestone within the next five years (PYMNTS).

Voice-based digital assistants today are reactive, not proactive (e.g. Siri, Alexa). Current digital assistants help with tasks such as answering general questions, sending messages, scheduling, providing updates on events, sharing information, and translating. To provide a step-change to making people’s lives easier, digital assistants need to be contextually aware and provide proactive assistance.

A true personal digital assistant is proactive. It understands you and your intent, knows your habits, and can make real-time suggestions based on this understanding.

Apple Maps’ predictive navigation provides a primitive example of this contextually aware proactiveness. Over time Apple Maps learns your routine and your daily work commute to start predicting your destination when you get in the car. It can give you an ETA or suggest an alternate route if there is traffic. Apple devices, which can be made aware of scheduled meetings, can also prompt the user to activate Do Not Disturb mode.

These features depend on clear and consistent data from the user and, therefore, only scratch the surface of personalization. Each still relies heavily on user input, such as consistently using Maps, sharing location data, or creating calendar events. The potential for AI-powered personal assistants to transform our daily lives lies in their ability to gather and analyze data without user input, making them genuinely proactive and personalized.

When the information is available, personal digital assistants can be proactive—this is where a step-change in value could be unlocked by AI technology.

Augmented AI: Context Matters

To create an assistant that is contextually aware of its user, the system needs to be able to observe and understand a user's daily activities. The key to solving this problem is the integration of Artificial Intelligence (AI) with Augmented Reality (AR). Rather than viewing them in a hierarchical structure, with one being more important than or dependent on the other, we see AI and AR as having a powerful symbiotic relationship.

AR can provide AI with personalized data to enhance an individual's experience significantly. Through wearables like AR glasses, data can be collected and understood contextually, enabling AI to act proactively in ways previously unattainable to consumers.

Initially, Augmented AI can assist with simple tasks. For instance, if you leave home without your wallet, your AR glasses can alert you because they “saw” it on the counter. Or, if you forget to lock the door before heading to the airport, your AR glasses can remind you. As more contextual data is integrated, the potential use cases expand, making an AI assistant feel like an extension of the user based on original intent. It can understand your health goals, remind you of important tasks, and proactively help you achieve more throughout the day. Some use cases include:

  • Cooking: Imagine hosting a dinner party and cooking for friends. If a friend in your group chat mentioned a soy allergy, your AI assistant could notify you if the yogurt you are using contains soy lecithin (through an automatic search of the yogurt ingredients) and suggest an alternative to buy in advance. Moreover, if your assistant knows you have a soy-free alternative at home, it could immediately recommend it during the act of cooking.
  • Fitness: Another scenario could involve creating workout programs tailored to your life. Your AI assistant could track your exercises using AR glasses and offer recommendations based on your performance. For example, if it notices you are taking shorter breaks between sets than usual, it could suggest longer rest to keep you on track. It could also take in health data from products like Whoop, Oura, or Eight Sleep to work around your schedule relative to your recovery and recommend when you should work out.
  • Productivity: If your AR glasses know your meeting schedule and tasks, it can use integrated eye-tracking, additional electroencephalogram (EEG) signals, and visual cues of screen time to suggest optimal breaks and task switching. This personalized awareness can help you stay focused and manage your time more effectively.

This level of proactive, real-time context can make your personal AI an invaluable tool in your daily life. The more available data, the more valuable an AI can become. Currently, consumer products lack the personalized data needed to unlock their full potential, so AI-based devices are either not widely adopted or are only used for basic tasks.

However, with the integration of AR (visual input) and AI (data insights) together, this dynamic changes. Instead of the AI reacting to the user, the user can react to the AI’s proactive insights and suggestions. This shift can lead to a more intuitive and personalized user experience, significantly enhancing the utility and appeal of AI-driven devices.

Takeaway: Artificial Intelligence boosts productivity by aggregating data and providing personalized, actionable insights. By gathering information from different sources, AI can offer tailored advice that helps elevate an individual's capability around routine tasks, letting you focus on what matters and easing the stress of remembering small details.

When paired with AR (visual input data), AI can offer an even richer experience by understanding and visually contextualizing your surroundings and actions in real-time. Imagine never going to bed worried about a forgotten task or missing a step in your routine because you were overwhelmed. With AI's proactive guidance, these stressors can fade away, making your daily life smoother and more efficient. We envision this reality coming at the intersection of AR and AI (data, input, insights).

Augmented AI

Contextual data unlocks personal AI

Welcome to Game Changers, the podcast that takes you beyond the games and into the heart of the gaming industry's future. Brought to you by Konvoy, a Denver-based venture capital firm investing in the platforms and technologies at the frontier of gaming. This podcast is your backstage pass to the pioneers, innovators, and visionaries who are redefining how we play and experience these virtual worlds.

In each episode, your hosts—Josh Chapman, Jason Chapman, and Jackson Vaughan, the founders of Konvoy — invite you to join them for candid and open conversations with the industry's most influential leaders. These guests are the “Game Changers”, the masterminds behind the scenes who've built remarkable enterprises and continue to push the boundaries of what's possible for our industry.

Whether you're a gamer, a tech enthusiast, or a startup aficionado, the Game Changers podcast offers valuable insights, inspiring stories, and exclusive access to the minds shaping the future of the gaming industry. Join us as we explore who these Game Changers are, what they've built, and what they're doing now.

Are you ready to level up your understanding of the gaming industry? Subscribe now to "Game Changers" and embark on a journey that goes beyond the screen to uncover the stories behind the gaming world.