CES underscores tech industry’s big challenges

Tomohiko Fukaya demonstrates Shiftall’s full-body tracking device, including the mutalk Bluetooth microphone over his mouth and the MeganeX VRE headset with an HDR micro OLED display, for playing VR in the metaverse during a press event at CES 2023 at the Mandalay Bay Convention Center on January 03, 2023 in Las Vegas, Nevada. Ethan Miller/Getty Images/AFP (Photo by Ethan Miller / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

While it’s easy to get distracted by all the shiny new toys on show at CES, the world’s largest consumer technology conference, a deeper look at what’s on reveals the myriad challenges facing the global tech industry over the next year.

The week in Las Vegas was dominated by beastly TVs, sleek new laptops and the ability to play video games in your electric car.

But the week also underscored why technology’s golden era of the past few years is over.

It’s not a stretch to say most of the so-called innovations on the conference floor are a solution in search of a problem. Not everything needs to have a computer chip in it – and just because you can doesn’t always mean that you should. While some of the announcements from the biggest companies have been impressive – new offerings from the likes of LG, Samsung, Nvidia, Hisense, TCL and others all hit the mark and will be lapped up by many consumers – there’s an overall feeling of cynicism and innovation fatigue pervading much of the show floor.

Many of the minnows on show in Las Vegas are showcasing technology that probably just shouldn‘t exist. Smart rollerskates, smart toilets, smart headbands to track your sleep … many of the so-called smart inventions at CES will likely fail to take off, and are a mere excuse to have another app on your phone. While the concept of a smart home is certainly not a fad, many items are simply better off left as analog.

The tech industry has been rightly criticised for being out of touch with end-users, and some of the worst examples can be found on the show floor in Las Vegas. I overheard a worker saying “I just want a TV that turns on and off”, and I have no doubt many average consumers would agree.

A man tries out the Haptic Suit by bHaptics during a press event at CES 2023 at the Mandalay Bay Convention Center on January 03, 2023 in Las Vegas, Nevada. CES, the world's largest annual consumer technology trade show, runs from January 5-8 and features about 3,100 exhibitors showing off their latest products and services to more than 100,000 attendees. Alex Wong/Getty Images/AFP (Photo by ALEX WONG / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

Political and economic concerns, including deteriorating US-China relations are also hanging over the show.

Tech giant Dell is reportedly planning to stop using China-made chips by 2024 and has told suppliers to reduce the amount of other made-in-China components in its products, while the likes of AMD and Nvidia – who each have a significant presence at CES – are moving their logistics centres from Hong Kong to Taiwan, according to reports.

The tech sector over the past few years was one defined by buoyant optimism and an almost naive sense of how tech can and will solve many of the world’s most pressing challenges.

On the ground in Las Vegas, we’re seeing that feeling replaced by one of a grim pragmatism, that our world is facing significant challenges that even the most well-intentioned technology companies will only be able to do so much to address. Many of the companies presenting, including Amazon and Roku among others, have shed hundreds of staff in recent months and the tech sector overall has been among the hardest hit by high inflation and interest rates, as well as economic impacts from Russia’s invasion of Ukraine. There are decidedly less nightclub parties and dinners this year than in years past.

Founder and CEO of iMediSync Inc. Dr. Seung Wan Kang displays the new consumer version of iMedisync's iSyncWave for digital brain health monitoring with AI brain mapping and LED therapy during a press event at CES 2023 at the Mandalay Bay Convention Center on January 03, 2023 in Las Vegas, Nevada. The brain–computer interface machine allows individual brain scanning at home so people can measure their brainwaves by themselves and then discuss results with their doctors. Ethan Miller/Getty Images/AFP (Photo by Ethan Miller / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

Still, there is reason for optimism and there are some genuinely innovative and heady things to look forward to. After years of slow progress and false starts, 2023 is shaping as a breakout year for electric vehicles, particularly in Australia in which big-name brands like Volkswagen, Toyota, Subaru and Ford are finally set to debut new EVs.

While many consumers want a TV that just turns on and off, for those in the market for a large screen smart TV, 2023 is looming as the best year for that yet.

There were an estimated 100,000 people in Las Vegas, each having productive conversations. While it’s going to be a challenging year for the global tech sector, a sector that seems more vulnerable than it has in years, it’s a healthy thing that we no longer view tech as our great saviour, and instead something that needs to be viewed with a critical yet curious eye, just like everything else.

David Swan travelled to CES as a guest of Hisense.