y letting wearers take photos and videos through tiny cameras in the lenses, stream content to Meta apps and talk to an AI assistant. Yet the same features that promise to make the AI-powered frames must-haves are sparking concerns, as bystanders have little control over being recorded or how their data is handled. “AI smart glasses raise significant privacy concerns,” said Kleanthi Sardeli, a lawyer at European digital rights advocacy group NOYB. “The main issues are linked to the use of people’s personal data to train AI models and transparency for bystanders.” Meta Platforms, which owns Facebook, Instagram and WhatsApp and generates the bulk of its revenue from advertising, is leveraging user data to power artificial intelligence tools, a move that brought the company to face scrutiny over data practices. Regulatory scrutiny in Europe European regulators have flagged risks since 2021, when Italy and Ireland asked Meta to clarify how it complied with local privacy laws. Ireland’s Data Protection Commission questioned whether a tiny LED indicator was enough to alert people they were being filmed, prompting Meta and EssilorLuxottica to enlarge the light and add a blinking pattern. Privacy concerns are particularly strong in the European Union, where stricter regulations have slowed adoption of some AI features.  AI-enabled wearables are regulated by the EU’s AI Act and the General Data Protection Regulation, or GDPR. “Any recording of individuals must be clearly communicated and must have a legal basis to record individuals,” unless the data was processed for purely personal or household reasons, a European Commission spokesperson said. But enforcing those rights is difficult when the device owner is unknown, says NOYB.  A 2024 Monash University survey of more than 1,000 Australians found owners see smart glasses as boosting their self-image and social ties, while non-users fear privacy breaches and social disruption. EssilorLuxottica said it partners with competent authorities to “drive innovation, safeguard privacy and set new industry standards”. A Meta spokesperson declined to comment beyond referring to EssilorLuxottica’s statement. Competition heats up Ray‑Ban Meta glasses lead the AI eyewear market thanks to a partnership that bridges tech and fashion, analysts and experts say, a gap that doomed Google Glass a decade ago. According to Barclays, EssilorLuxottica currently holds a 60 per cent share of the smart glasses market. “Instead of trying to make something cool, Meta partnered with people who know what’s cool,” said Ross Gerber, CEO of California-based wealth management firm Gerber Kawasaki, which holds Meta shares. But its first-mover advantage may fade as rivals launch better products, said Bernstein analyst Luca Solca. Smart glasses could also cannibalize traditional eyewear, which accounts for about a quarter of EssilorLuxottica’s revenue. Several tech giants aim to catch up. In November, Alibaba released its new Quark AI-powered glasses in China, where Ray-Ban Meta is not sold. Apple is expected to unveil its own model next year and release it in 2027, Bloomberg News reported.  Google is working with Warby Parker and luxury fashion house Kering to develop its own version, announcing on Monday that it expected to launch its first product in 2026, sending EssilorLuxottica shares lower. Amazon is also reportedly exploring the market, and Xiaomi launched a similar product in June.  Leveraging its brand portfolio EssilorLuxottica, the world’s biggest eyewear maker, can lean on its 18,000-store network and brands such as Prada, Armani and Chanel. “One of the key differentiating elements for them is not just their ability to produce, but also their ability to distribute, and their ability to leverage a portfolio of brands,” said Bassel Choughari, Paris-based portfolio manager at Comgest, which holds EssilorLuxottica shares. “That is an element that shouldn’t be underestimated.” EssilorLuxottica CEO Francesco Milleri, who took over as head of the company in 2020, is steering the group towards medical technology. Smart glasses, central to this strategy, contributed more than 4 percentage points to EssilorLuxottica’s 9-month sales growth, sparking a 14 per cent market rally for the 140 billion-euro company, even though they account for just 2 per cent of global sales, according to investor CCLA. EssilorLuxottica is looking to build on this momentum. It has widened its portfolio to sports brand Oakley and held exploratory talks with Prada, heir to the luxury brand, Lorenzo Bertelli told Reuters. In September, it introduced a model with an in-lens display, controlled via a bracelet that translates hand gestures into commands.  Competition is welcome, the company says: “A vibrant ecosystem will help us drive market growth, fuel innovation and expand consumer choice.” Reporting by Elisa Anzolin in Milan and Gianluca Lo Nostro in Gdansk. Additional reporting by Helen Reid in London and Echo Wang in New York. Editing by Lisa Jucca and Louise Heavens. All courtesy of Reuters.