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A Comprehensive Look at the Connected Home and AI in 2023

March 24, 2023

connected home and AI
Companies can help catalyze a growing opportunity by prioritizing data privacy, says CABA report prepared by Harbor Research.

A CABA research report analyzes barriers to adoption and future opportunities in the current connected home and artificial intelligence (AI) landscape and proposes key recommendations for market participants to shape the development of this space.

Findings on the Connected Home

Amazon echo dot an example of AI and the connected home
Amazon Echo Dot, connected homes are often organized around select ecosystems and high profile devices like Alexa

Using primary and secondary research, the research concluded that cost and security remain the largest obstacles to customer demand. Where AI devices and services do exist in connected homes today, they tend to be organized around a select few ecosystems (comfort, security) and are driven by a few high profile devices (Echo/Alexa). Other ecosystems, especially mission-critical ones, remain underserved. But the current conditions are also ripe for disruption as ecosystem participants act to establish themselves as key influencers. Companies and standard-setting bodies can further that goal by embedding devices with data privacy and cybersecurity protections and collaborating to deliver more benefits to consumers.

Overall, the proliferation of smart systems in connected homes overall, coupled with a new demographics of homeowners who expect a technology-driven experience and the rapid evolution of AI technology, are converging to present a significant new opportunity for connected-home artificial intelligence, the report concludes. For it to further evolve, emerging and established participants should prioritize open ecosystems, where connected home services can leverage multiple devices and disparate data types to provide greater value to homeowners and tenants. An executive summary is available for download here. The full report will be available in the CABA Shop following an embargo period.

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