AI Wearables Hit a "Wall of Trust": Tech Giants Bet on the Next Computing Platform, but Privacy Fears Could Be the Biggest Obstacle to Mass Adoption

Stock News
09/23

Companies betting that artificial intelligence (AI) wearables will usher in a "post-smartphone era" are triggering growing privacy concerns worldwide, a trend that could slow the adoption of the emerging technology. The strongest backlash against devices designed to "see, hear, and respond" to the world around them is aimed at the smart glasses co-developed by Meta (META.US) and Ray-Ban. This product merges EssilorLuxottica's fashion design with the AI capabilities of the social media giant, which is pursuing "personal superintelligence," helping bring smart glasses into the mainstream. Meta is reportedly expected to unveil a camera-less version of its smart glasses at its Connect conference as early as Wednesday, highlighting the balancing act facing companies hoping to capture a slice of the over $600 billion smartphone market.

However, these smart glasses have become a focal point for intensifying anxiety over AI devices. They are under scrutiny in courtrooms hearing privacy lawsuits, are viewed with caution by users worried about covert recording, and have drawn warnings that ubiquitous AI glasses in the future will erode societal expectations of anonymity and consent. Several venues, including Wetherspoon, one of the UK's largest pub chains, have restricted their use. The outcome of these privacy disputes could ultimately shape the market that tech companies see as the next major computing platform. If businesses fail to earn public trust, the very features that make AI wearables useful—always-on cameras, microphones, and awareness of the surroundings—could become the biggest barriers to their widespread adoption.

According to insights gathered from nearly a dozen tech executives, analysts, and legal experts, device manufacturers are experimenting with various form factors to address these concerns, including glasses, pins, pendants, and recording devices that can attach magnetically to phones. Some companies are finding that these products are gaining traction faster with business clients than with consumers.

Samsung Plans a Collaborative Approach

Jay Kim, executive vice president of Samsung Electronics' mobile division, said in a July interview: "The product forms that ultimately win will be those that make interactions more natural, useful, and trustworthy." He added that as AI takes on more tasks, users will demand that systems remain secure and stay under their control at all times. Samsung plans to enter the smart glasses market later this year through partnerships with Gentle Monster and Warby Parker but does not believe such devices will replace smartphones.

Altman Envisions On-Device AI Processing

OpenAI CEO Sam Altman, in a December interview, described his vision for an always-on device that can understand the user's environment while knowing when to offer help and when to stay quiet. He believes such products will ultimately need to process data locally rather than continuously sending information to the cloud. Altman stated: "You want a device you can trust... that has full context and knows when it should help and when it shouldn't." He also noted: "If a device is going to listen to your entire life and watch your entire life, most people wouldn't want that running on cloud servers." He added that local AI processing "could take a few more years," depending on how quickly OpenAI expands its processor capabilities.

Experts say the core challenge is that the more environmental information an AI device collects, the more powerful it becomes. This information can include images of people who never consented to being recorded.

Lawsuits Allege Covert Recording

Ryan Clarkson, the managing attorney at the firm representing consumers in a lawsuit against Meta and Luxottica of America for allegedly making misleading statements about smart glasses privacy, said: "For consumers, it's not always obvious how much privacy they're giving up in exchange for these new, efficient consumer products that can boost productivity and make life more convenient." The lawsuit alleges that after footage captured by the glasses was uploaded to Meta's servers for training its AI systems, human annotators reviewed and labeled videos of people changing clothes, using restrooms, and handling financial information. Clarkson said the people being recorded often appeared unaware they were being filmed. He added: "No reasonable consumer who was promised privacy protections could think these devices would intentionally or unintentionally capture them in their most intimate moments."

Meta has stated that an indicator light, which cannot be turned off during recording, protects the privacy of those around the user, and that the camera will be disabled if the light is covered or tampered with. The company also said it disagrees with the allegations in the lawsuit and will defend against them. Meta added that reviewing user data to improve products is a common industry practice, and it filters out personally identifiable information.

Startups Offer Camera-Less Alternatives

The privacy backlash has prompted other companies to consider smart glasses without cameras. For some startups, solving the privacy problem could be a matter of survival. Even Realities, founded by former Apple engineer Will Wang, launched the camera-free G1 smart glasses in 2024, with its latest flagship, the G2, arriving in November 2025. Wang said in a July interview that consumers increasingly associate smart glasses with covert recording, so cameras should be withheld until companies can establish stronger safeguards. The company reached a $1 billion valuation in July and expects to have hundreds of thousands of users by the end of the year.

San Francisco-based Pocket, meanwhile, is betting on a recording device that clips onto a phone. Users must press a button to record conversations, a method the company hopes will ease privacy concerns around audio-only devices because it is more deliberate and conspicuous, much like using a phone's camera. The company says roughly 170,000 Pocket devices are in use eight months after launch, including employees at companies like DoorDash, Michelin, and Santander.

Plaud, which sells card-shaped and wearable AI recording devices, also prioritizes privacy. Its Plaid One Explorer Edition, priced at $249.99, is an earbud and charging case system that only records when activated, alerting nearby people through lights or audio cues. The company currently has 2.5 million users and over $100 million in annual recurring revenue.

Jitesh Ubrani, research director at IDC, noted that privacy concerns around AI devices are not unprecedented. He pointed out that smartphones faced similar unease when cameras and microphones first became ubiquitous. Ubrani stated: "As a society, we want to make sure people have informed consent and are aware when they are being recorded. That's different from being completely against recording."

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