At Google’s Pixel event at the beginning of October, the search engine giant announced generative AI features would be integrated into its new smartwatch, the Pixel Watch 2. The announcement comes as generative AI becomes increasingly important in wearable technology.

AI is becoming increasingly important in the crowded wearables market, primarily due to the integration of conversational platforms, GlobalData stated in its 2023 Wearables report.

The smartwatch market is an increasingly saturated market, set to become a $64bn industry by 2030, according to research company GlobalData forecasts, with the entire wearable industry reaching $290.6bn by the end of the decade.

The Pixel Watch 2, which launches on 12 October in 30 countries, features new upgraded sensors and a slightly more powerful Snapdragon Wear 1500 chip. 

Google’s new sensors in the Pixel Watch 2 include an improved heart rate sensor, a skin temperature sensor and a continuous electrodermal activity sensor. 

Google announced it would be adding GenAI features to the watch in early 2024 via the Fitbit app – giving users clearer, more digestible insights into their health and fitness.

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GlobalData analyst, Ardit Ballhysa, believes the addition of generative AI into the Pixel Watch 2 will give Google a chance to improve its overall footing in the nascent space.

This exposure is not able to be replicated by Rivals like Meta and Microsoft, as they current have no smartwatches on the market, she adds.

However, the product would struggle in the saturated wearables market without the added FitBit and generative AI integration, Ballhysa said. In 2022, smartwatches accounted for 39.1% of the overall wearables market.

“Google’s smartwatch continues to fall short compared to competitors due to limited size options and compromised durability,” Ballhysa wrote in a GlobalData report. 

The decision to offer the smartwatch in a single small 41mm size will significantly lower sales, Ballysa added.