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AI-Powered Smartphones: The Future is Now

AI Integration in Smartphones Set to Skyrocket

Market research firm Canalys has released a compelling report that outlines the current market share of smartphones with advanced AI capabilities and forecasts their growth in the coming years.

According to the report, 16% of globally shipped smartphones already integrate AI capabilities, and this figure is expected to soar to 54% by 2028. The annual predictions can be seen in the image below.

Industry analysts predict a compound annual growth rate of 63% for AI-capable smartphones between 2023 and 2028. This surge is driven by consumer demand for enhanced features such as AI assistants and edge-to-edge processing.

Initially, this shift is expected to be evident in flagship models due to current technical limitations, where on-device models can only run on high-end devices. However, as these models become more efficient, mid-range segments are likely to gain access to these advanced capabilities.

The transformative potential of smartphones equipped with generative AI capabilities is set to usher in a new era for the industry. Over the next 3-5 years, AI integration is anticipated to significantly enhance the user experience. Sergio Buniac, President of Motorola and Senior Vice President of Lenovo Mobile Business, echoed this sentiment while discussing Motorola’s future in the smartphone business.

Companies like Google and Samsung have already embedded numerous AI-based features into their recent flagship devices, though no specific ‘AI phone’ branding has emerged yet. Chinese smartphone manufacturers Huawei, Honor, Oppo, Xiaomi, and Vivo are also striving to incorporate extensive AI features into their high-end products. Their approach involves everything from developing in-house chips to training models for specific applications.

The race to integrate AI into smartphones is intensifying, setting the stage for a revolutionary shift in how we interact with our devices.

Conclusion

The rapid integration of AI capabilities in smartphones is set to revolutionise the industry, with projections showing that over half of all smartphones will feature advanced AI by 2028. This growth, driven by consumer demand for enhanced functionality and user experience, will initially be seen in flagship models before trickling down to mid-range devices as technology becomes more efficient. Companies like Google, Samsung, and various Chinese manufacturers are leading the charge, embedding AI features into their high-end products. As AI technology continues to evolve, it promises to bring significant improvements to how we interact with our devices, marking the dawn of a new era in smartphone innovation.