This may be considered old news, but the hype surrounding AI is primarily about launching your product swiftly to capitalize on the market’s momentum.
However, there are times when creators, driven by intense ambition, develop products that the market does not truly need, which ultimately may not justify the effort invested. Allow me to elaborate.
Learning from failures
I’ve competed for seed capital for numerous projects, earning awards like the 2020 Innovation and Technology award in Cancun and the Best Project for Industry award in Osaka on 2022. I’ve also participated in hackathons and competitions, experiencing both successes and rejections.
These experiences, including my recent participation in the NASA Hackathon 2023, have taught me valuable lessons about the importance of market research and product strategy.
Through projects like Xook-AI, an intelligent news platform, I’ve gained insights into what makes products truly successful. We even got interest from big players on our country such as MVS Noticias.
These insights are crucial when evaluating why the Rabbit R1 and Humane AI Pin struggled to gain traction.
Do the research
Every product needs a solid foundation in market research. Before launching, you need to understand the specific problems your customers face and how your product can solve them.
I have an example of one research we did for a project that has been put into contest, reaching semifinals in the first ever Code Launch on Mexico in 2023.
The Rabbit R1 and Humane AI Pin overlooked the fact that we already have a powerful AI-equipped device in our pockets: our smartphones. Meta, Apple, and Google are all integrating personal AI into their existing products.
Additionally, the price points of these devices — $199 for Rabbit R1 and $699 for Humane AI Pin — are steep, especially considering they rely on a monthly subscription and WiFi connectivity. This makes it no surprise that users have expressed concerns about their value proposition.
Status Quo
Competition isn’t just about other products — it’s about the existing solutions users are already familiar with. You might have a revolutionary product, but if it doesn’t offer a clear advantage over what people already use, you face an uphill battle.
The app market is a prime example. While apps were once the gold standard, users are increasingly using fewer apps due to the sheer number available.
Rabbit R1’s downfall lies in its Android-based app. Why create a separate device when you could have simply developed a user-friendly app for existing smartphones? The market was already saturated with similar AI-powered apps, making the added expense of a dedicated device questionable.
Leverage Existing User Bases
A wise business angel once told me:
“No one is going to download your app just to play with a paid version of ChatGPT.”
He was right. People are more likely to use an app they already know and trust.
Both the Rabbit R1 and Humane AI Pin missed a crucial opportunity: integrating with existing user bases. Why create a separate device when you could leverage the power of existing smartphones and their vast user base? They could have developed their technology as an app or web-based service, offering a convenient and familiar experience for users.
This approach could have resulted in wider reach, faster adoption, and lower costs for users. It’s a lesson that all entrepreneurs should consider: don’t reinvent the wheel when you can build upon existing structures and reach a larger audience.
Conclusion:
If you’re embarking on your entrepreneurial journey, remember this: don’t chase hype or trends just to avoid FOMO. Start by understanding the problem, conducting thorough research, and presenting your ideas to the market. The only way to truly know if your product is successful is by listening to your customers.
The Rabbit R1 and Humane AI Pin provide valuable examples. Humane’s response to criticism shows the importance of continuous iteration and adapting to user feedback. By following these principles, you can avoid costly mistakes and create products that truly meet market needs.
The only way to know if a product is going to be successful or not is to launch it to the market… but sometimes doing the research saves you the wait for the market to tell you your product is wrong. Start with careful research, gather feedback early and often, and be prepared to pivot when necessary. Trust me, it’s worth it.
Thank you so much for reading my post, if you got so far, please consider subscribing to my newsletter, sharing, commenting or leaving a clap to the post. It helps us a lot, and its a constant motivation to continue creating content like this.
We have a lot of things in our hands at the moment, but we love to share content, your interaction is a good reminder that taking a moment to write is helping others and its a well used time. Don’t forget on checking out our social media and our agency if you want us to help you on building your business around AI.
