Big Tech competing on AR glasses: The battle for your eyes

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  Quantumrun Foresight
• March 19, 2025

Insight summary

Tech companies are racing to develop augmented reality (AR) glasses that seamlessly merge digital content with the real world, with major players integrating artificial intelligence (AI) to enhance user experiences. As businesses explore applications in retail, remote work, and social media, concerns around privacy, security, and long-term health effects are also emerging. Governments may need to establish new regulations and invest in digital infrastructure to manage the impact of AR glasses on public spaces, data privacy, and the workforce.

Big Tech competing on AR glasses context

Augmented reality glasses are at the center of an intense competition among major technology companies, as firms race to develop devices that seamlessly blend digital content with the physical world. Google has gained an advantage after Apple canceled its Mac-connected AR glasses project due to technical issues, including battery drain and performance concerns. Meanwhile, Meta continues to push forward with its Ray-Ban smart glasses and its prototype Orion AR glasses, while companies like Snap, Huawei, and Xiaomi are also investing in the space. Despite past failures, including Google Glass a decade ago, recent advancements in AI and hardware are making AR glasses more viable for mainstream use.

The increasing focus on AI integration is making AR glasses more useful and appealing to consumers. Meta is enhancing its Ray-Ban smart glasses with a live AI feature that responds to visual and auditory prompts, while Google is developing smart glasses powered by its Astra AI assistant. These advancements allow for hands-free interaction, real-time contextual awareness, and even proactive reminders, such as identifying people or suggesting purchases based on surroundings. While early AR devices were mostly used in specialized industries like healthcare and construction, companies now see a broader consumer market, positioning AR glasses as a potential replacement for smartphones in the long run.

Despite growing excitement, significant challenges remain before AR glasses can become everyday devices. High costs, battery limitations, and social acceptance issues have hindered previous attempts, as seen with Google Glass, which faced backlash over privacy concerns. Even current AR glasses, such as Snap’s latest Spectacles, have drawbacks like short battery life and overheating, making them impractical for extended use. However, with companies investing heavily in AI-driven features and sleeker designs, the AR glasses market is evolving rapidly, and the global tech giants will shape the future of wearable computing.

Disruptive impact

With AI-powered assistants built into AR glasses, people may rely less on smartphones, accessing information directly through voice commands or visual overlays. This shift could improve multitasking, but it may also raise concerns about distractions and increased digital dependence. As AR glasses incorporate facial recognition and real-time data processing, controlling personal information in public spaces could become more difficult. Additionally, the long-term use of wearable displays could affect eye health and mental well-being, with users constantly processing digital content alongside their physical surroundings.

Retailers could develop AR-powered shopping experiences where customers see product details or promotions in real time while browsing in stores. Corporate training and remote work may improve as employees use AR glasses for hands-free instructions, virtual meetings, or on-the-job guidance. However, companies may need to address security risks, as AR devices could expose sensitive data in public or work settings. Additionally, brands may struggle to design AR experiences that are both useful and comfortable, avoiding past failures where early smart glasses failed to attract mainstream users.

Regulations on data collection may become stricter, particularly if AR glasses are capable of scanning environments and identifying people without consent. Law enforcement and city planners could explore using AR for real-time navigation, emergency response coordination, or urban development projects. At the same time, governments may need to invest in digital infrastructure to support AR-based services, such as smart city initiatives or augmented public transportation systems. Countries that take the lead in setting AR standards and funding research may shape global policies, influencing how technology is adopted across industries and societies.

Implications of Big Tech competing on AR glasses

Wider implications of Big Tech competing on AR glasses may include: 

• A decline in smartphone usage, shifting consumer spending toward wearable technology and altering the mobile device market.
• Businesses adopting AR-powered advertising that overlays digital promotions in real-world environments, changing how companies engage with consumers and personalize marketing.
• AR glasses enabling real-time translation and accessibility features, improving communication for people with disabilities and language barriers in workplaces and public spaces.
• The integration of AR into urban planning allowing city officials to visualize infrastructure projects before construction, reducing planning errors and saving costs.
• Governments investing in cybersecurity frameworks to address new risks from AR glasses collecting and transmitting personal data in public and private spaces.
• AR-driven remote education expanding learning opportunities, allowing students in rural or underserved areas to access interactive coursework and virtual classroom experiences.
• The rise of AR-based social media interactions creating new digital behaviors, where users blend virtual avatars with real-world experiences, affecting personal identity and social norms.
• The energy demand for always-on AR devices increasing electronic waste concerns, prompting companies to develop more sustainable production and recycling methods.
• The job market shifting as AR-based automation replaces certain customer service and training roles, leading to a demand for workers skilled in AR software development and maintenance.

Questions to consider

• How might AR glasses reshape the way you use technology in daily life, from shopping to socializing?
• What challenges might businesses and governments face in ensuring AR glasses enhance convenience without compromising privacy?