Microsoft develops AI wearable to help employees work alongside digital agents

Microsoft has revealed early-stage wearable and desktop AI hardware concepts designed to help employees interact more seamlessly with digital agents, signalling the company's latest effort to reshape workplace computing in the age of artificial intelligence.

The prototypes were unveiled during Microsoft's annual developer conference, where Steven Bathiche, a technical fellow at the company, demonstrated two experimental devices currently being tested internally. According to reporting by the BBC, the products are being piloted by a few hundred Microsoft employees and remain research concepts rather than commercial products.

The initiative forms part of what Chief Executive Officer Satya Nadella described as a new technology "form factor" for AI-driven work.

New devices aim to extend AI interactions beyond the PC

The two concepts are designed to give users access to AI-powered tools and digital agents without relying solely on a laptop or desktop computer.

One device is a portable desktop cube equipped with a touch-enabled and voice-activated display. The second is a wearable access badge that can be attached to a lanyard or belt loop.

According to Microsoft's demonstrations, both devices connect to Microsoft software and computers, enabling employees to monitor and engage with AI agents performing work-related tasks.

Key features highlighted by Microsoft include:

• A wearable access badge designed for mobile AI interactions
• A portable desktop cube with touch and voice controls
• Connectivity with Microsoft software, PCs and AI systems
• Biometric authentication through fingerprint activation
• A built-in camera on the wearable device
• Internal pilot programmes involving a few hundred employees

Microsoft said the current testing phase will help determine how such devices could be developed in the future. The company has not announced plans to commercialise either product.

Focus on workplace AI and agent-based workflows

The prototypes were presented as part of Project Solara, an initiative centred on making AI agents more accessible during daily work.

In demonstration videos shown during the event, office workers used the devices to track and interact with digital agents carrying out tasks on their behalf. AI agents are increasingly being deployed across technology organisations to automate workflows, generate software code and complete routine tasks with limited human intervention.

Bathiche described the wearable badge as lightweight and designed specifically for interactions with agents while on the move.

The concept reflects a broader industry shift towards agentic AI systems, which are designed to perform actions and complete objectives rather than simply respond to user prompts.

Wearables return to Microsoft's hardware strategy

The announcement marks Microsoft's latest attempt to establish a presence in wearable computing.

The company previously developed HoloLens, an augmented reality headset that competed in a category alongside devices such as Meta Quest and Apple's Vision Pro. HoloLens was at one stage earmarked for a multibillion-dollar contract with the US Army.

However, after years of development and reported testing challenges, Microsoft confirmed in 2024 that it would stop producing the headset.

The renewed push into wearables comes as other major technology companies revisit the category. The BBC noted that Google recently announced a renewed effort in smart glasses, more than a decade after the launch of Google Glass.

Privacy questions remain part of the conversation

One notable element of Microsoft's wearable badge is its integrated camera.

During the demonstration, Bathiche used the device to photograph the conference audience after authenticating with a fingerprint scan. He said the images were then sent to him for review.

Microsoft has stated that the camera is intended to help AI agents better understand and respond to a user's surroundings.

The inclusion of cameras in AI-enabled devices is likely to attract scrutiny, particularly as other products in the category have faced questions around data collection, recording practices and user privacy. Similar concerns have surrounded AI-equipped eyewear developed by other technology companies.

For now, Microsoft's wearable badge and desktop cube remain experimental. However, the pilot programme offers an early indication of how the company believes employees may work with AI agents in the future, extending interactions beyond keyboards, screens and traditional computing devices.