Snap is pulling the plug on its AR for Enterprise Services (ARES) unit after just six months. Snap's CEO, Evan Spiegel, explained the move to employees, citing a few reasons.
First, they thought they could mainly use their existing mobile AR tech, but turns out, they needed to invest heavily to support web-based AR, which is both complex and not as fun for users. Additionally, the rise of generative AI made it easy for companies to create their own virtual try-on tools, making it tough for Snap to stand out.
Lastly, the company's business performance made it hard to invest more in this area, so they're focusing on their core advertising business.
Snap launched ARES in March, allowing businesses to use Snap's AR tech in their apps, websites, and even physical locations. They believed that AR, which is all about putting digital stuff into the real world, would be a game-changer for many industries.
However, competition in the virtual try-on world has gotten fierce, with giants like Google joining the race. Wayne Liu, who works at AR company Perfect Corp., said companies need to dive deep into technology and expand into new industries like fashion to stay in the game.
Perfect Corp. plans to boost its AI tech and mix in AI GC (artificial intelligence with generative content) skills. They also want to expand into fashion, including accessories and jewellery, to meet the needs of fashion-conscious customers.