Demand for smartphones with built-in artificial intelligence will increase in 2024

Artificial Intelligence (AI) is becoming more and more popular and is being applied in many different fields, from healthcare, education to manufacturing and services. Among them, generative AI is one of the fastest growing fields.

Generative AI is a branch of AI that focuses on creating new content, such as text, images, audio, and video. The applications of generative AI are becoming increasingly diverse, from creating innovative works of art to developing new products and services.

Generative AI is permeating almost every product today. From smart cars to every conceivable application on smartphones, the possibilities of generative AI have many people interested. Many organizations are increasingly investing in generative AI applications in the workplace. Consumers are also enjoying the possibilities of generative AI, especially in the way it solves tasks for them.

Generative AI is also expected to be integrated into smartphones. According to a report by Hong Kong-based technology market research firm Counterpoint Research, 2024 will be a turning point for smartphones with generative AI, with initial data suggesting that shipments will exceed 100 million units. By 2027, Counterpoint Research predicts that smartphone shipments with generative AI will reach 522 million units, growing at a compound annual growth rate (CAGR) of 83%.

What is a smartphone with built-in generative AI?

While most smartphones today come with some form of AI built in, smartphones with generative AI will offer more than just pre-programmed responses or performing pre-defined tasks.

For example, Apple's Siri virtual assistant is not a generative AI chatbot, but a built-in voice-controlled personal assistant for Apple users, powered by AI. It does not have the capabilities that a generative AI chatbot on a smartphone would have.

Generative AI features on smartphones can be used to improve user experiences in a variety of areas, including:

Take photos and videos:Generative AI can be used to create more realistic, vibrant photos, or artistic photos. Generative AI can also be used to improve video quality, such as reducing noise, increasing contrast, etc.

Language translation:Generative AI can be used to translate texts into many different languages ​​more accurately and naturally.

Content Creation:Generative AI can be used to create creative and unique works of literature, art, music, etc.

Apple has not yet launched any products or services related to generative AI, but according to multiple reports, the tech company is planning a smartphone with generative AI in the future. It is likely that this phone will be an enhanced version of the iPhone, but the official name has not been revealed yet.

Meanwhile, the recently launched Google Pixel 8 Pro is the first smartphone to feature generative AI. The device currently runs on Google's advanced AI platform Gemini Nano, promising new AI updates and features to be introduced in future versions.

Gemini Nano allows users to have a more useful, efficient and personalized experience on the device. With AI generated on Pixel 8, users can compose emails, set appointments with contacts and perform a number of other useful tasks, but it cannot be called a "revolution" to completely change the way we use our phones.

Samsung is also not out of the game in developing smartphones with integrated generative AI. They have announced their own version called Samsung Gauss, aiming to apply AI on all of their devices.

Samsung Gauss is a generative language model that can assist with email composition and content translation; enhance user experience by enabling smarter device control when integrated into products; help software developers write code quickly, and create and edit images, a prominent and popular feature among generative AI users.

Samsung Gauss's strength lies in its versatility, which can be applied to many devices and support users in many different tasks. The ability to create and edit images also promises to bring a creative and interesting experience to users.

However, compared to Google's Pixel 8 Pro, information about the actual features of Samsung Gauss is quite limited. We still have to wait for Samsung to announce more details about the launch time, compatible devices, and the specific experiences that generative AI brings to its products.

Chinese mobile phone developers are also joining the race for generative AI on smartphones. According to a report by the South China Morning Post, Chinese phone maker Oppo is stepping up its AI research efforts amid growing competition to integrate ChatGPT-like products into mobile phones.

Oppo is investing heavily in generative AI, including developing its own large language model (LLM) called AndesGPT. Jason Liao, president of Oppo Research Institute, said that Oppo's research department and hardware and software engineering teams are actively involved in these efforts.

Oppo's participation shows that the Chinese smartphone market is very active in the field of generative AI. AndesGPT promises to bring new and useful applications to Oppo phone users, such as text editing, language translation, and artistic content creation.

The race to create AI on smartphones is not only between American technology giants like Google and Apple, but also involves Chinese manufacturers like Oppo. This promises to bring more diverse choices to users and promote the rapid development of AI technology in the future.

Xiaomi is also joining the race for generative AI on smartphones. In a Forbes report, Xiaomi CEO and founder Lei Jun announced in August this year that the company's virtual assistant, Xiao Ai, has begun upgrading to incorporate generative AI capabilities.

Notably, this version of Xiao Ai with generative AI will run a lightweight AI model with 1.3 billion parameters operating directly on the phone, instead of relying on the cloud. According to Xiaomi, this model has the same performance as a 6 billion parameter model running on their cloud computing service.

Major smartphone manufacturers around the world are constantly researching and developing new generative AI features for smartphones. It is expected that smartphones with integrated generative AI will become more popular in the coming years.

Mobile devices of the future

While Google has a strong AI edge, Counterpoint Research sees Samsung and Qualcomm as the leaders in smartphones with generative AI. Their existing products and capabilities allow them to be early movers in this market.

Samsung is expected to capture nearly 50% of the market within the next two years, similar to its success with foldable phones, according to Counterpoint Research. Chinese manufacturers such as Xiaomi, Vivo, Honor and Oppo will also be important players in this market.

Qualcomm expects to capture more than 80% of the smartphone market with generative AI integration within the next two years, and MediaTek is expected to be able to catch up with devices using its Dimensity 9300 chip.

However, according to Tarun Pathak, Research Director at Counterpoint Research, the market share of smartphones with integrated artificial AI in the overall market will be in the single digits next year, but interest and investment in this technology will increase in the coming time. Even if the market share is still small, the strong participation of technology giants will create a big media effect, attract users' attention and promote the development of the technology.

The industry is also working towards a standard definition for smartphones with generative AI built on contributions from stakeholders, Tarun Pathak also said.

He added that 2024 will be largely a period where manufacturers and users get to know, learn about, and experience these new phones, with the turning point expected to come around 2026, when AI-powered smartphones become more diverse in price, reach a wider range of users, and really make a big impact on the market.

Meanwhile, Counterpoint Research Vice President and Research Director Peter Richardson shared: “Over the past few years, AI has become an indispensable feature in smartphones. Now, we expect the launch of phones that are optimized to run generative AI models, in addition to the usual AI applications on smartphones. Potential use cases include more personalized content creation, smarter digital assistants with unique personalities and conversational styles, content recommendations and more.”

However, Richardson also believes this will require addressing issues such as memory constraints and will likely require a hybrid approach, combining both generative AI and traditional methods to ensure the best performance.

“What is certain, however, is that we are entering an era where smartphone users no longer need to adapt to their devices; on the contrary, it is the smartphones that integrate generative AI that will have to adapt to their users,” he concludes.

In short, in the future, the smartphone market integrated with artificial intelligence promises to be very vibrant with fierce competition between the world's technology giants. This will promote the rapid development of AI technology, bringing many benefits and new experiences to users.