AI Devices Are on the Horizon: Will Your Beloved Apps Join the Journey?

Tech titans in Silicon Valley such as Amazon, Meta, and OpenAI are in a fierce competition to create “operating systems” tailored for AI-driven devices—and by 2026, it’s anticipated that these initiatives will gain significant momentum. These devices envision a future where AI agents can perform tasks on a user’s behalf, without the need for direct interaction with apps or websites.

In theory, this creates an ideal partnership between people and technology. However, it might fundamentally alter the business landscape for a large segment of consumer tech companies.

Rather than navigating through apps saturated with advertisements and upsells, AI devices promise a streamlined experience where users can request an outcome and receive it. An AI assistant is expected to handle tasks like booking travel, ordering meals, or replenishing supplies seamlessly. It should have the capability to determine which services provide what’s needed efficiently and affordably.

Setting aside the significant challenge that current AI agents can be somewhat unreliable, AI-based operating systems also pose a risk of alienating companies from their user base. This could spell trouble for app developers.

Historically, firms like Uber and DoorDash have depended on keeping users engaged within their apps to serve ads, promote additional services, and foster loyalty that encourages repeat visits.

AI agents could potentially condense these businesses to their essential services, diminishing the necessity for users to interact with their apps at all. Consequently, even if a user spends the same amount on a DoorDash delivery via AI glasses, the company might lose prospects for upselling services in the future.

Anjney Midha, an investor and board member at Sesame—the AI device startup initiated by former Oculus leaders including Brendan Iribe—asserts that if companies lack “deep control over the supply of their product,” it will be challenging for them to function in a landscape where they must connect with users via an AI agent.

Traditionally, a fundamental aspect of developing a successful operating system has involved establishing a robust developer platform. Companies need to offer developers viable incentives to create apps for their ecosystems. However, this relationship has often been fraught with friction. Although Apple has historically provided developers an avenue to connect with numerous users, it has also taken up to 30 percent from every in-app purchase.

Certain tech firms are hesitant to allow AI agents from smaller startups to mediate their relationships with users.

Rabbit, the startup behind the talked-about R1 device launched at CES 2024 (which received unfavorable reviews), has already encountered this barrier. CEO Jesse Lyu mentioned to WIRED that major app developers like Uber were not particularly inclined to collaborate with Rabbit, refusing to provide API access that would enable the R1 to request rides directly. Consequently, Rabbit had to devise workarounds to interact with apps like Uber without the necessary formal permissions.

“You need to understand their perspective: They depend on selling advertisements. That’s a primary revenue source for many of them,” he remarked, referring to the broader tech industry. “They viewed us as too small, and collaborating didn’t seem worthwhile to them.”

Perplexity has faced similar challenges with early iterations of its shopping agent. In November, Amazon filed a lawsuit against Perplexity regarding an agent that could make purchases on behalf of users. Amazon, which is pursuing its own shopping agents, demanded that Perplexity cease collecting data from its site, rendering it nearly impossible for the startup’s agent to acquire products from Amazon.

Nonetheless, other marketplaces and app developers seem open to collaboration with larger platforms. Companies like DoorDash, Instacart, and Expedia have committed to developing early versions of AI applications within ChatGPT, while Ticketmaster, Uber, and OpenTable have introduced their initial agentic functions for Alexa+. These partnerships indicate that many tech companies are cautiously optimistic about the prospects for innovative app experiences mediated by AI technologies.