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CES dominated by physical AI exhibits

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Slow humanoids reflects development challenges

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Chip advancement crucial for future device capabilities

By Max A. Cherney

LAS VEGAS, Jan 9 (Reuters) - Just four years after the

launch of ChatGPT, the chatbot that brought artificial

intelligence into the mainstream, and it seemed like almost

every exhibitor at the CES show in Las Vegas this week was

touting an AI-powered gadget.

The annual event draws the biggest companies from the global

tech and auto industries who this year underscored the shift

from AI software to "physical AI" with robotics, humanoids and

autonomous driving technology.

And while big ‌tech laid out the blueprint for what lives and

homes could look like over the next couple of years, dozens of

entrepreneurs and little-known companies vied to capture

attention with AI-powered doodads for tasks as varied as ​cutting

hair and offering emotional support.

Amid all the pizzazz, investors and analysts had the task of

predicting which AI-imbued hardware has the potential to be a

hit ‍with consumers and become a multi-billion-dollar business.

"AI is really driving a whole innovation and demand cycle,"

said Arm's Chris Bergey, ⁠head of the chip tech firm's

unit ⁠that handles PCs, phones and other AI gadgets. Arm told

Reuters exclusively that it has reorganized to create a physical

AI unit to expand its presence in the robotics market.

Interest in humanoid robots has boomed ‌as companies see

human-form machines as the next frontier in AI and automation.

At CES - ​once called the Consumer Electronics Show - robots from

South Korea's LG and others dealt games of poker,

folded paper to create pinwheels and danced with attendees.

However the glacial pace at which humanoid robots performed

tasks reflected challenges developers face such as processing

power, battery life and ⁠dealing with situations beyond their

programming. As such, experts do not expect a ‍viable humanoid to

be available ​anytime soon, at least not at an affordable price.

AI HARDWARE AND SOFTWARE WORKING TOGETHER

China's Lenovo ( LNVGF ) hosted a splashy event at the Las

Vegas Sphere that featured Nvidia ( NVDA ) CEO Jensen Huang and

rival chipmaker AMD boss Lisa Su. Lenovo ( LNVGF ), the world's

largest personal computer maker, unveiled its Qira ‍AI voice

assistant platform designed to work across devices and provide

services from the likes of travel company Expedia ( EXPE ).

Meta said it has enhanced its Ray-Ban Display and

Neural Band products - both launched last year - with features

such as live recording, and Alphabet's Google launched

its AI model Gemini for TVs and other home devices.

Then there were the more utilitarian devices given an AI

makeover among gadgets that appeared to be more of a gimmick.

Among the more frivolous offerings were gadgets containing

three-dimensional avatars which employed AI to say "sweet

things" in different voices, and a pocket pet with a personality

that its makers said uses AI to grow and change with its owner.

One ​company showed off ‍an AI dry cleaning apparatus priced

at $599 that it said could detect a garment's material and clean

it appropriately in three minutes. Another showcased a set of

hair clippers that use AI to help cut people's locks.

After viewing a batch of AI-enhanced lawnmowers, massage

chairs, mattresses and other ​household items, Seaport Research

analyst Jay Goldberg said many of those gadgets were previously

referred to as "smart" devices and that companies may have

adopted the AI moniker as a marketing tactic.

CHIPS UNDER THE HOOD

Most AI applications run on the cloud but will likely move

to run on devices due to cost, which will require specialized

functions built into each chip.

"Unless you've been living under a rock over 2025 you

probably heard that AI is getting really expensive," Perplexity

AI CEO Aravind Srinivas said at an Intel ( INTC ) launch event.

Intel PC chips business head Jim Johnson likewise told

Reuters of companies' enormous and growing data-crunching costs

in the cloud.

The U.S. chipmaker launched its Panther Lake AI chip for

laptops, the first product made using a next-generation

manufacturing process ​called 18A. Compatriot AMD announced a set

of processors designed for AI PCs.

AI can make PCs run more efficiently in terms of speed,

battery life and security, for instance. Less clear is whether

consumers will flock to purchase them.

"I think the general consumer is still not aware of what an

AI PC really means or what it can do for them that they can't do

today," CEO Ben ‍Bajarin of tech consultancy Creative Strategies

told Reuters. "Hopefully that will become more clear over time."