People are returning Humane AI badges faster than Humane can sell them, report says

According to a report from The Verge on Wednesday, Humane AI Pins were being returned faster than they were sold between May and August. The AI ​​gadget, released in April, was met with terrible reviews, and Humane is currently dealing with more than $1 million worth of product returns.

The AI ​​Pin is a pin that advertises a number of features — like an AI voice assistant, a camera, and a laser projector — that its creators hope will replace smartphones as gadgets. It costs $700 and requires a subscription that costs $24 per month, before taxes or 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. However, today, only 7,000 of those sold units have not been returned, The Verge reported yesterday, citing a person “with direct knowledge.” The Verge reported that it reviewed internal sales data, which showed that returns outweighed sales of about $9 million worth of devices/accessories. The internal data also reportedly revealed that 1,000 orders for the AI ​​Pin were canceled before they even shipped.

Humane did not 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 financial details.” However, Cuccias declined to provide details on the publication, saying Humane “has nothing further to share as we do not comment on financial details and will refer that to our legal counsel.”

The problem is reportedly compounded by the fact that there is currently no way to refurbish and resell the pins. This would mean that thousands of AI pins are currently sitting as electronic waste until the issue is resolved. According to The Verge, the issues stem from the pins being connected to T-Mobile’s service, which prevents Humane from reassigning the returned pins. T-Mobile has not commented on the issue, but an anonymous source told The Verge that Humane is storing the returned pins in hopes of “eventually” finding a solution.

As a new category of devices, there were already concerns that AI gadgets like the AI ​​Pin or Rabbit R1 would become e-waste. Concerns about the ability of the companies making the devices to survive and questions about whether these gadgets will be better as applications suggest that even if Humane finds a way to repurpose thousands of returned devices, we could end up with a huge pile of outdated AI Pins.

There are many reasons to worry about Humane’s survival.

Terrible reviews from the start

Humane had hoped to sell about 100,000 units in the device’s first year of availability, an anonymous source told the NYT in June. The alarming sales and returns numbers reported by the Verge come after the company’s founders, both former Apple employees, raised a reported $240 million in funding.

As detailed by the NYT in June, sources close to the AI ​​Pin claimed that Humane’s co-founders ignored poor internal reviews and pushed through with the product despite concerns about heat and battery life. In June, Humane warned users against using the Pin’s charging case due to the risk of fire. Speaking to The Verge this week, Cuccias admitted that Humane “knew we were at the starting line, not the finish line” when it launched the AI ​​Pin. A company representative noted that software updates have been released in response to negative reviews.