2024 Innovation Trend Recap: A Deployment Year for Multimodal AI and Mixed Reality
Plus, major behavioral and landscape shifts in search, streaming, and social media
As 2024 draws to a close, we here at the Lab are holding up our end-of-year tradition to offer our recap on the biggest trends in technology and media innovation in the past 12 months, as well as to cast our gaze forward to see how they will evolve in the coming year.
Generative AI’s Uneven Year
Looking back, 2024 will likely be remembered as an uneven year for consumer-facing AI deployment. On one hand, LLM-powered AI chatbots continued to proliferate, both in utility-driven and entertainment use cases, and multimodal applications of generative AI grew more sophisticated, capable, and widely accessible. On the other hand, early experiments with AI-first wearable devices, such as the Humane AI Pin and the CES-breakout Rabbit R1, proved to be flawed in execution and product-market fit.
The exception that came closest to successfully integrating generative AI so far is the Meta Ray-Ban glasses, which incorporates Meta’s own AI model to enable speech command and power a conversational interface. This set of smart glasses, hailed as one of the best-selling products in many Ray-Ban stores, is set to receive even more AI features in the upcoming iteration, including visual intelligence and real-time translation. It will be interesting to see how these new features will perform and keep drawing in new users.
Despite the setback on the hardware front, the speed and scale at which generative AI is being embraced by users have been promising: OpenAI’s ChatGPT just crossed a new milestone of 300 million weekly active users in early December, an impressive increase considering the company only reported passing the 200 million user milestone less than four months ago. ChatGPT’s integration with Apple Intelligence is also officially rolling out with iOS 18.2, allowing users to access it through Siri.
Looking ahead, the deployment of multimodal AI will continue apace and unlock new use cases and brand opportunities. The recent public releases of two prominent text-to-video AI models, OpenAI’s Sora and Google’s Veo, point to a promising year ahead for AI-assisted video creation, while the 2024 Spotify Wrapped results introduced Google’s podcast-generating NotebookLM to more mainstream users. In the coming year, we expect to see more experimentation with AI-generated content across all audio-visual formats.
Looking at the bigger picture, as AI models become commoditized, it is likely that the current hype cycle around AI will calm down in 2025. VC funding of smaller AI startups will likely shrink, as the big tech players (plus OpenAI) strengthen their industry positions. The so-called “AI bubble” won’t burst, but it might deflate a bit as the industry continues its shift toward practical applications over speculative investment, especially AI agents that can automate and complete digital tasks on users’ behalf.
For brand marketers, the smart thing to do in the near term is to keep testing and learning about multimodal AI tools and how they can help improve your operational efficiency without undermining the customer experience. As AI becomes more embedded in marketing strategies, it will be important to stay ahead of the curve in terms of ethical AI use. Ensuring transparency in AI-powered decisions and maintaining customer privacy will be central to building lasting relationships.
The Debut of Next-Gen MR Hardware
Mixed Reality (MR) is an umbrella term that covers the full spectrum of immersive experiences that blend the digital and physical worlds. Mobile-based augmented reality (AR) applications and gaming-oriented virtual reality (VR) headsets have been laying the groundwork for MR technology, and 2024 marks the debut of a new generation of MR hardware that ranges from ski-goggle-size headsets to futuristic smart glasses.
Apple rolled out its “spatial computing” headset Vision Pro in the early months of 2024, aiming to broaden the use cases of existing MR devices beyond gaming and entertainment by tackling general tasks like productivity, media creation, and communication. In fact, some tech analysts have argued that productivity apps are emerging as a possible killer use case for Vision Pro that could drive adoption. Thanks to Apple’s brand halo effect, the launch of Vision Pro brought significant attention to the MR sector and set a high bar for immersive experiences.
Besides Apple, another major stakeholder in the MR space is Meta. In addition to the aforementioned Ray-Ban glasses, Meta is currently dominating the VR market with its Quest headsets. However, Meta has a bigger ambition in MR, as indicated by a prototype of MR glasses codenamed Orion shown at its 2024 Connect event in late September. Orion features an impressive 70-degree field of view and supports voice commands, eye-tracking, and even a neural wristband for gesture control. With each unit reportedly costing around $10,000 to produce, it is far from ready for the consumer market in its current iteration. Still, by showing off this working prototype, Meta indicates it is determined to attract developers and build a foundational ecosystem of MR applications that will be ready when the hardware eventually becomes commercially viable.
Snap has also made a significant push into MR hardware in 2024 with its latest iteration of Snap Spectacles, enabling users to interact with a built-in AI assistant directly through the glasses. But Snap’s hardware remains nascent, with a narrow field of view and limited battery life, making it more a prototype for developers than a viable consumer device. Still, Snap’s developer-centric approach may help build out applications and use cases that drive future adoption.
Looking ahead, Apple is reportedly reducing the production of Vision Pro as it pivots to focus on developing a more affordable “non-Pro” headset. Meanwhile, Samsung might give Meta a run for its money with its upcoming MR glasses scheduled for a late-2025 launch. They are being developed in collaboration with Google, and reportedly share some specs with the Meta Ray-Ban glasses, including Qualcomm’s AR1 chipset. To fully compete against the Meta’s MR products, it seems that $300 might be the pricing sweet spot that could help transform MR glasses from a niche gadget into a mainstream accessory.
For brands, MR is an important emerging category that can elevate branded experiences and reshape consumer expectations, thus making it a category worth investing in through experimentation and partnerships. For instance, J.Crew’s virtual closet experience for Vision Pro leverages mixed reality to transform how customers engage with fashion. Users can view clothing items on 3D mannequins placed in realistic virtual settings, allowing for a more lifelike sense of texture, color, and fit. Similar immersive shopping experiences are also being tested by the likes of Lowe’s and StockX. We expect to see more MR experiences being developed in the coming years to capitalize on its broadening use cases.
That said, content discovery continues to be an issue for the MR space. Unlike the web, where text-based search and recommendation engines are mature, immersive content is more fragmented and less easily searchable. Some have proposed that AI-generated dynamic UI might be a possible solution for future MR headsets, interpreting content from multiple ecosystems and providing a unified discovery layer.
The AI Search Arms Race
2024 saw major shifts in the competitive landscape for some key categories, and search might be the poster child in that regard. Caught in a perfect storm of the deployment of AI search, younger generations preferring UGC over standard search results, plus a renewed antitrust focus on Google’s alleged market monopoly, the competitive landscape for search has shifted significantly.
For years, the search experience followed a familiar pattern: users typed queries into a search bar (most likely Google’s), received ten blue links, and navigated through a set of webpages to find what they needed. As companies like Bing and Perplexity started to rapidly deploy AI-based search and provide users with synthesized answers, Google has no choice but to follow suit and roll out AI Overviews to remain competitive. This shift from “searching for answers” to “receiving answers” is a fundamental rewrite of the value chain.
Meanwhile, younger generations are ditching traditional search for social platforms as they seek quick, relatable answers. Short-form video reviews, influencer testimonials, and peer-to-peer Q&A platforms like Reddit or TikTok’s comment sections are eroding the authority once held by top-ranking web pages. In fact, Google’s own studies revealed that 40% of Gen Z users now prefer using TikTok and Instagram for search over Google.
Adding to this volatile mix is the renewed antitrust scrutiny facing Google, whose market share in traditional search has been described as monopolistic by critics and regulators. In August, U.S. District Judge Amit Mehta delivered a landmark ruling against Google, declaring the company a “monopolist” that had “acted as one to maintain its monopoly” in the search engine and search advertising markets. Among the remedies proposed by the DOJ, Google could be forced to sell its Chrome browser, end its default search deals with browser makers, and share data with competitors in search. Per the New York Times, Google is expected to present its own remedies later this month, and a hearing is scheduled for April 2025, where both parties will argue their proposals. Following that, Judge Mehta is expected to make a final decision on remedies by mid-2025.
All three factors are destabilizing the search market and creating openings for newcomers and alternative platforms looking to redefine how information is found, curated, and delivered. Among the most pressing questions in this evolving ecosystem is how to monetize AI-driven search. The legacy model based on pay-per-click SEO ads relied on user friction, as users clicked through the results, generating ad impressions along the journey. But with search answers being delivered directly to users and thus removing that user friction, where do ads fit it?
Therefore, the imperative moving forward would be to figure out a monetization model that works for AI search. Whether it’s through sponsored insights that weave brand recommendations into responses, as Google and Perplexity have started testing on their respective platforms, or building subscription-based AI search tools, like the one that OpenAI has added to ChatGPT for paid users, the key challenge will be balancing revenue generation with user trust and maintaining a transparent, high-quality search experience.
For all the excitement around AI search, the big question remains: will people switch engines en masse, or remain entrenched in their habits? Users have shown brand loyalty to Google for years due to speed, accuracy, and familiarity. Even as AI alternatives emerge, the inertia of habit is strong. Those who grew up “Googling” may find it hard to switch unless a rival platform offers a meaningfully better experience. Younger generations, comfortable with UGC-driven discovery, may be more open to new search paradigms.
Furthermore, as multimodal AI continues to mature, AI search engines could soon evolve beyond text to include custom images and videos, thus offering users richer, visual responses to their inquiries. However, this incorporation of AI-generated media may further sideline small publishers who rely on search traffic. For brands and publishers alike, the challenge will be finding ways to remain visible and relevant in this new web environment by focusing on community-building to circumvent algorithmic marginalization.
Streaming Enters its Post-War Era
In 2024, streaming has surpassed broadcast and cable as the dominant way Americans consume content on their televisions. According to Nielsen data, streaming now accounts for over 40% of total time Americans spend watching television, compared to 24% spent on broadcast networks and 26.3% spent on cable channels.
The previous “streaming wars” era saw a race to build the most compelling content libraries, outbid one another for exclusive distribution rights, and pursue global expansion at breakneck speed. Now after years of intense competition, Netflix secured a dominant position, leveraging its vast content offerings and global reach. Meanwhile, free ad-supported streaming television (FAST) services, such as Roku Channel, Tubi, and Pluto, are gaining users thanks to the low barrier of entry, while competing against other streaming services for ad dollars. For other streamers like Max and Peacock, the path to profitability is far from clear.
In this post-streaming-wars era, however, the landscape is increasingly defined by a stark dichotomy: Netflix vs. YouTube. This divide represents the classic battle between professionally produced content and user-generated content (UGC), where Netflix’s big-budget series and films contrast with YouTube’s ever-expanding universe of creators. The latest Nielsen data puts YouTube leading with 10.6% of total TV time, ahead of conventional streaming services. It turns out that, in this post-war era, viewers are no longer choosing between competing networks, but between formats and user experiences.
One of the most significant shifts in streaming this year is the mass migration of live events, especially sports and awards shows, to streaming platforms. Netflix will offer two live NFL games on Christmas Day, plus a halftime performance by Beyoncé. The streamer recently attracted 108 million live viewers globally to tune in for a live boxing match between Jake Paul and Mike Tyson, despite widespread complaints about buffering and glitching issues. Similarly, Amazon doubled down on its Black Friday NFL game by adding a live NBA game afterwards. Amazon reported its internal data points to a 10% uptick in customer engagement with interactive ads on this year’s NFL game compared with last year’s debut edition.
In a sign of things to come, awards shows are also getting on streaming. For example, over the next few months, the 2025 Oscars will stream live on Hulu, the Grammys on Paramount+, and the Screen Actors Guild (SAG) Awards will stream exclusively on Netflix. These deals mark a pivotal moment in the entertainment industry, as its flagship live events face declining viewership — a challenge that echoes the growing competition from user-generated content.
For streaming services, the push into live events isn’t just about adding more content; it’s about diversifying their offerings in a way that keeps users engaged for longer. As live events become a new fixture across streaming platforms, we expect them to make live events more interactive, tapping into niche communities of viewers who might otherwise be underserved by traditional television broadcasts.
For sports fans, this new era can be frustrating. The NBA, for example, is experiencing a ratings decline partly due to fragmented distribution, as fans find themselves jumping between multiple subscriptions to catch the games they care about. As the broader issue of accessibility in live sports on streaming platforms is becoming harder to ignore, the question looms large: Can the streaming platforms keep fans engaged without alienating them with too many subscription requirements?
Looking ahead, perhaps Venu, a joint venture between ESPN, Fox, and Warner Bros. Discovery aimed at creating a “skinny bundle” for sports fans, could consolidate major sports content into a single platform and provide a comprehensive viewing experience. However, its launch is currently on hold due to a lawsuit filed by FuboTV, which has temporarily blocked the service.
Social Media Realignment
2024 marked a pivotal year in the ongoing evolution of social media platforms. The seismic shifts we witnessed in the social media sphere are not just about platform changes but also behavioral shifts.
Social media usage is increasingly bifurcated: private messaging platforms like WhatsApp and Discord thrive as hubs for intimate, purpose-driven communication, while algorithmically curated feeds on TikTok and Instagram dominate the entertainment space by showcasing engaging content from strangers. WhatsApp has become a one-stop platform for diverse activities such as matchmaking, medical appointments, and blood donor networks, especially in the global south, consolidating billions of daily interactions. Meanwhile, TikTok has expanded its ecosystem with features like in-app shopping, live-streamed events, and AI-driven content tools, solidifying its role as a cultural and commercial powerhouse. Together, this bifurcation in functions highlights the growing divide in how people interact online.
Reflecting our increasingly polarized culture, one of the most striking aspects of social media realignment is the rise of alternative platforms (e.g., Mastodon, Truth Social, BlueSky) reflects user migration driven by dissatisfaction with mainstream platforms. Lately, there has been a notable migration of users from X (formerly Twitter) to Bluesky, especially following significant political events such as the re-election of Donald Trump, causing many progressive users to decamp from the Elon Musk-owned X. As a result, Bluesky’s user base has grown from 9 million in September to over 20 million by mid-November, with reports of up to 1 million new users joining in a single day. A good sign for Bluesky’s potential longevity occurred on December 2, when it became the central hub for breaking news about the Seoul coup. This mirrored the “global town square” role that Twitter often played during its early years for real-time updates on major events.
The rise of Bluesky also points to another important factor in the realignment of social media: the gradual expansion of the fediverse. Interestingly, Bluesky uses a proprietary AT Protocol that’s different from the more widely accepted ActivityPub protocol that platforms like Mastodon and Meta’s Threads support, which could potentially limit interoperability between Bluesky and other fediverse platforms. Regardless, as federated platforms like Bluesky continue to gain traction in the coming years, they demonstrate the potential for decentralized networks to reshape the social media landscape, offering a glimpse of a future where users have greater agency in their digital interactions.
Culturally, excessive use of social media is being stigmatized as a new vice, especially for kids and teenagers, as doom-scrolling through low-quality UGC gets blamed for creating “brain rot.” In the U.S., the parental backlash against social media reached new heights this year, with multiple regulatory actions grabbing headlines. Similarly, Australia recently passed legislation to ban social media for users under the age of 16, but did so without defining what constitutes “social media” specifically. Mirroring the aforementioned bifurcation of social platforms, are we talking about banning the likes of TikTok or the likes of WhatsApp? If TikTok counts as social media, shouldn’t YouTube also count? The lines between content platforms and social media have never been blurrier. And parents and regulators will have to realign on how to effectively monitor and manage young kids’ time spent on social media to limit its negative impact.
Lastly, like anything in 2024, AI deployment also made an impact on social media. The push-pull dynamic between platforms and creators is getting intense as leading UGC-driven social platforms increasingly tout AI creative tools. This tension mirrors broader societal debates about the role of AI in creativity. For creators, the choice is stark: adapt to AI tools and remain competitive or risk being left behind in a rapidly evolving ecosystem.
The social media realignment of 2024 is far from over. Moving forward, social platforms will continue to refine their identities and align with user behaviors. For brand marketers, this evolving landscape presents both challenges and opportunities, and understanding platform-specific dynamics will be critical to crafting effective strategies. On decentralized platforms like Bluesky and Mastodon, marketers may need to embrace more authentic, community-driven engagement to align with the ethos of these spaces. On AI-driven content platforms, the integration of AI tools into content creation and advertising will likely become central for delivering personalized, engaging messages to users.