Humane Is Struggling to Survive. The Problem: More Users Are Returning Its AI Pin Instead of Buying It

Humane’s future doesn’t look very promising. The artificial intelligence company, founded by two former Apple employees, aimed to astonish the world with a revolutionary product. As the previous came to a close, many tech enthusiasts eagerly awaited the launch of the AI Pin, while others were preferred skeptical anticipation.

The race to reinvent the traditional smartphone welcomed a new contender, but when the AI Pin began reaching users, it provoked a reaction that all startups hope to avoid at all costs: Many of them were disappointed. The experience Humane promised, or the one the customers imagined they would receive, was far from what they received. What’s even worse, they had paid $699 for the subpar experience.

Humane’s AI Pin Failure

In a world where AI is on the rise, the AI Pin was advertised as a device from the future available in the present. However, the present suggests that the future of Humane, the company, is uncertain. According to sources consulted by The Verge, more AI Pins were returned per day between May and August than were purchased.

The sales of AI Pins are estimated to be around 10,000. Out of this total, 8,000 units were still with customers in June. By August, this number had decreased to close to 7,000. The Verge also reported that Humane has had to account for $1 million in product returns. Currently, the company has a large inventory of AI Pins and significantly less revenue.

However, the company faces additional problems. The Verge also states that Humane is unable to resell returned AI Pins, even as refurbished products, due to restrictions that Humane’s connectivity partner, T-Mobile, didn’t anticipate.

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This wouldn’t be the first time that a tech company has discarded many of its devices, but the idea of the AI Pin becoming electronic waste seems reasonable. We’ll have to wait and see if the company can find a use for these devices, as well as what its next steps will be.

Before 2020, Humane secured $230 million in seed capital and established a complete structure with over 200 employees to develop its business plan. Now, many are eager for answers. Will the company persevere or will it eventually be acquired? We’ll find out eventually.

This article was written by Javier Marquez and originally published in Spanish on Xataka.

Image | Humane

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