It is still unclear when to expect the product
It looks like AMD's FSR technology will become more similar to DLSS in the future, which should make it more competitive.
AMD reported that it is actively implementing artificial intelligence in all its products, noting that AI will allow scaling the performance of gaming solutions.
2024 for us — An important year because we have spent many years developing artificial intelligence hardware and software. We've just completed work on bringing AI across our entire portfolio, including cloud, edge, PC, our embedded devices, our gaming devices. We're enabling AI to scale our gaming devices, and 2024 will truly be our year of massive deployment
There are no details yet, and AMD will obviously show a lot of interesting things with AI, but in this case we are interested in scaling gaming products, that is, increasing the performance of video cards through upscaling. It is quite possible that this will be implemented already in FSR 4 or in the conditional FSR 3.5, but for now we can only guess about this. Whether we will see such a decision this year is also unclear.
Recall that FSR of any version does not rely on artificial intelligence in its work, as Nvidia DLSS does, if only because AMD GPUs do not have special tensor cores or their analogues. However, Intel XeSS also uses AI, and the Arc GPU does not have such blocks either. More precisely, in the case of Intel video cards, the technology is implemented through optimized execution on XMX matrix engines, while other compatible graphics processors manufactured by other companies use universal instructions supported by most modern GPUs. That is, AMD may well choose universal instructions without the need to create a GPU with special cores.