Where the hell Is the Wearable Industry in the AI Boom?

An analysis of why wearables—the industry best positioned for AI integration—are not just falling behind but disappearing from the conversation and people’s mind.

While sectors like finance, SaaS, marketing, logistics, education, and surveillance are racing to implement AI (generating trillions in value), the wearable technology industry remains oddly stagnant.

This is particularly surprising because wearables sit at the perfect intersection of three transformative technologies: artificial intelligence, embodied computing, and real-world human interaction.

As AI Stocks Soar, Wearables Are Nowhere to Be Found

Despite the explosion of tools like ChatGPT, Claude, and embedded LLMs, wearables — which have access to our most intimate, real-time data (movement, stress, heart rate, sleep, gesture) — are still stuck in gadget mode (as evidenced by recent reviews).

AI can talk. AI can code. AI can understand language and recognize good from malicious intent. But we can only use these capabilities on laptops and phones—not when we need them most: in motion, in real life, away from the screen.

The Job Creation Potential paradox

While other sectors use AI to cut costs and fire workers, (with significant job losses reported), wearables could leverage AI to:

• Create entirely new categories of tech jobs
• Launch new industries
• Revolutionize physical-digital interaction

But that’s not happening and the reason is simple. If they can put AI in a Roomba but not in a wearable, it’s because we still lack textiles integrated with sensors that can act on data.
Why?

Systemic Barriers to Innovation

Academia’s current structure actively hinders wearable advancement. Too much politics, too little business literacy and real-world testing. With some exception in Holland and USA. When funding requires 4-year step-by-step plans for research that’s by nature exploratory and unprecedented, innovation dies.

Integrating materials mechanics, sensors, and function becomes impossible under rigid academic structures, that don’t give approval without a “Coca-cola” as a reference to copy. When the grant cycles, asks for blueprints and references for things that don’t exist it’s no wonder the few PhDs who tried didn’t get past the first step never reaching a fully finished proof of concept prototype stage, other researchers could build upon.

Meanwhile, startups chase quick wins—releasing yet another LLM wrapper, instead of tackling the deeper, harder (but more valuable) challenge of AI-powered wearable systems.

The Roomba and Why Materials Mechanics Matter

Researching wearables properly is expensive. Much closer to robotics than to a Roomba.

The Untapped Social Impact

Beyond economics, wearables could address our growing mental health crisis. Research shows society faces rising cognitive decline from digital overstimulation, social isolation, and narcissistic behaviors (Nature study).Wearables could help reverse that.

Properly developed AI wearables could:

• Help break screen addiction cycles
• Facilitate healthier social interactions
• Create tech that supports rather than replaces human connection

But that requires vision, risk and leadership.

The Leadership Vacuum

The wearable industry needs visionary leadership willing to invest in long-term, meaningful innovation. The Wearables industry needs an Elon Musk. Someone bold enough to invest in dancing robots, because when robots and textiles will be able to dance, they will be able to have meaningful and safe interactions with humans.

Curious how this applies to your product or team?

Let’s talk.

Here a link to my wearables prototyping workshops.