Humane AI Pins were returned at faster rate than they were sold between May and August, according to a report from The Verge on Wednesday. The AI gadget released in April to abysmal reviews, and Humane is now reportedly dealing with over $1,000,000 worth of returned product.
The AI Pin is a lapel pin that markets numerous features—like an AI voice assistant, camera, and laser projector—which its creators claim will replace smartphones as a go-to gadget. It costs $700 and requires a subscription that costs $24 per month, not including taxes and fees, for cloud storage, cellular data, and a number.
In June, The New York Times, citing two anonymous sources, reported that Humane had sold 10,000 of its AI devices. But today, only 7,000 sold units have not been returned, The Verge reported yesterday, citing someone "with direct knowledge." The Verge said it viewed internal sales data showing returns outpacing device/accessory sales of about $9,000,000. Internal data also reportedly revealed that 1,000 AI Pin orders were canceled before they even shipped.
Humane didn't respond to Ars Technica's request for comment. Company spokesperson Zoz Cuccias told The Verge that there were inaccuracies in The Verge's report, "including the financial data." However, Cuccias declined to share specifics with the publication, saying that Humane has "nothing else to provide as we do not comment on financial data and will refer it to our legal counsel.”
Reportedly exacerbating the problem is that there is currently no way to refurbish and resell the pins. That would mean that thousands of AI Pins are currently sitting as e-waste until the problem is addressed. According to The Verge, problems stem from the pins' connection to T-Mobile service, which prevents Humane from reassigning returned pins. T-Mobile hasn't commented on the issue, but an anonymous source told The Verge that Humane is holding on to returned pins in hopes of "eventually" finding a solution.
As a new device category, there was already concern about AI gadgets like the AI Pin or Rabbit R1 becoming e-waste. Worries about the ability of the devices' companies to last and questions over whether these gadgets would be better as apps suggest that even if Humane found a way to reassign thousands of returned devices, we could still eventually be dealing with a massive pile of obsolete AI Pins.
And there's plenty of reason to be concerned about Humane's survival.
Horrible reviews from the start
Humane had hoped to sell about 100,000 units during the device's first year of availability, an anonymous source told the NYT in June. The alarming sales and return figures reported by the Verge come after the company's founders, two former Apple employees, accrued a reported $240 million in funding.
As detailed by the NYT in June, sources close to the AI Pin claimed that Humane's cofounders ignored poor internal reviews and forced the product's release despite concerns about heat and battery life. In June, Humane warned users against using the pin's charging case due to a fire risk. Speaking to The Verge this week, Cuccias acknowledged that Humane "knew we were at the starting line, not the finish line" when it released the AI Pin. The company rep noted software updates that have come out in response to negative feedback.
