Five Insights From Consumer Electronics Show 2023

CES came back in full swing for the first time since the pandemic. From Starbucks generating clean water for coffee growers in East Timor to Mercedes-Benz announcing they will build a network of 2000+ charging stations to upgrade the electrical grid – it’s clear companies are working to solve pressing issues through technology. My Oliver Wyman colleague, Thomas Kautzsch , and I were on the ground in Las Vegas, exploring how innovation is addressing global challenges. Here are the key takeaways from our conversations on the ground:

Working More Broadly – The automotive world is migrating towards broader mobility solutions which require OEMs to partner with broader transportation players like platform providers and app developers. As a result, the culture between the tech and auto worlds will collide, and an emphasis on building true partnerships is emerging. OEMs will now also have to think with the end customer’s experience in mind, which is new since dealers have been the traditional intermediaries.

Honing Accuracy – It’s no longer about bigger and better. Today, the focus has shifted to smart precision technology with increased efficiency. John Deere CEO John May spoke about how digital twins allow simulation of different scenarios for different crops to maximize harvest yields. Precise application of starter fertilizer and herbicides allow for plant-level care and increased outputs while reducing the burden on the environment and use of resources.

Autonomous driving – Level 3 autonomy must consider the 3S: safety, security, and situation. Enhanced situational awareness in vehicles will become more significant as EV adoptions expand. Level 3 driving in Las Vegas and other areas with internet access is not an issue, but areas with little bandwidth prove challenging.

Sustainability – Throughout the conference, brands talked about their sustainability plans. John Deere shared that their development goals include tapping into biofuels, using hybrid, and advancing internal combustion engines (ICE) technologies. Mercedes-Benz announced they were upgrading their electric grid and building a network of 2000+ charging stations.

Artificial Intelligence – Aside from its ample benefits, defining boundaries for AI was a key theme at CES. AI isn't inherently malicious. But if left unmonitored, algorithms could produce extreme decisions on behalf of the data it's presented. A big challenge is also establishing diverse representation in the data being fed to AI and removing biases in the people developing the technology. Another major challenge of AI is how to copyright outcomes and results. Lawsuits are in tow as AI art production borderline plagiarizes other artists’ work.

Conclusion: Many of the exhibits and a lot of the discussion surrounded technologies that have been around for a while. However, there are many great opportunities for companies to combine technologies in a clever and forward-looking way to address some of the biggest challenges of our times.

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