The integration of artificial intelligence (AI) into smartphones marks a key moment in mobile technology. Moving from traditional processing to AI-enhanced capabilities transforms how users interact with their devices daily.
AI is not a future concept; it’s a present reality being actively integrated into the latest smartphones by leading manufacturers.
Tech giants are making your phone smarter than ever
Apple, Samsung, and other leading smartphone manufacturers are at the forefront of embedding AI capabilities directly into their devices. Apple’s recent preview of iOS 18.1, which introduces its first generative AI (GenAI) tools, exemplifies this shift.
New tools available under the Apple Intelligence banner are designed to make interactions with smartphones more intuitive and context-aware.
Apple’s integration of GenAI within the iPhone 15 Pro and Pro Max showcases how AI can personalize and enhance user interactions. New models, powered by advanced AI, can understand and predict user needs, enabling more seamless and efficient usage.
Introducing these features on high-end devices hints at a broader rollout across other models and price ranges as the technology becomes more accessible and cost-effective.
Samsung and other major players are also embedding similar AI capabilities into their flagship devices. When focusing on AI, these companies are not just enhancing performance but are fundamentally changing how users perceive and use their smartphones.
The goal is to create a device that understands its user and adapts to their needs in real-time, moving beyond static features to dynamic, personalized interactions.
Soon, nearly every smartphone will be powered by AI
Adoption of AI in smartphones is set to grow exponentially. According to IDC, nearly 75% of smartphones will feature AI capabilities by 2028. Shifts show that AI will soon be a standard feature rather than a premium add-on.
Initially, these AI-enabled smartphones will be concentrated among flagship models like the iPhone 15 Pro, Google Pixel 8 Pro, and Samsung Galaxy Z Flip6. New, high-end devices are currently the testing ground for AI features due to their advanced hardware capabilities.
However, as the cost of AI-capable components decreases, these features will trickle down to more affordable models. Democratization of AI technology will allow a broader range of consumers to access the benefits of AI, leading to a more widespread transformation of the smartphone market.
New forecasts suggest a significant acceleration in AI adoption as manufacturers compete to offer the most advanced features across various price points, making AI-enhanced experiences a key differentiator in the market.
The cutting-edge chips behind the AI revolution in phones
Integrating AI into smartphones is heavily dependent on advancements in hardware, particularly in the development of AI accelerators and Neural Processing Units (NPUs). NPU components are now standard in high-end mobile processors, supporting the real-time processing required for sophisticated AI tasks.
Major chip manufacturers, including Intel, Qualcomm, MediaTek, Samsung, and those using Arm architecture, have all incorporated NPUs into their designs.
Specialized processors are designed to handle the complex computations that AI tasks demand, such as real-time language translation, image recognition, and natural language processing, without relying on cloud-based services.
Over the next two to three years, AI acceleration will become a standard feature in most mobile processors, even in mid-range devices.
Widespread integration will significantly improve the performance of AI features across the smartphone market. However, the very low-end devices, particularly those priced around $100, may still lack these advanced capabilities due to cost constraints. Nonetheless, as economies of scale kick in and technology continues to advance, the price barrier for AI integration is expected to lower, bringing sophisticated AI experiences to an even broader audience.
How on-device AI will keep your data safer and smarter
One of the most compelling advantages of integrating GenAI directly into smartphones is the improved privacy and security it offers. Unlike cloud-based AI, where data must be transmitted over networks, on-device AI processes information locally.
This means that sensitive data—whether it’s personal messages, photos, or search queries—never leaves the user’s device. Localized processing reduces the risk of data breaches and offers users greater control over their personal information.
On-device AI dramatically improves the performance of applications that rely on real-time data processing. For instance, tasks like audio and video improvement, digital assistance, and device management can be handled more efficiently, with lower latency, because the data does not need to be sent to and from a remote server.
As AI capabilities continue to advance, the benefits of on-device AI will become even more pronounced. Users can expect a future where their smartphones not only understand and anticipate their needs but do so in a way that prioritizes their privacy and security.
What GenAI can do on your smartphone today
The capabilities of generative AI (GenAI) on smartphones are set to transform everyday functions. These AI tools are not just incremental upgrades; they represent a fundamental shift in how tasks are performed, making smartphones more intuitive and user-centric.
GenAI is set to automate your digital life
GenAI’s role in everyday smartphone functions is expanding rapidly. One of the key areas where GenAI makes a significant impact is in automating routine tasks. AI can now generate messages or emails based on specific conversational tones, whether “friendly,” “professional,” or “concise.”
New capabilities simplify communication, letting users draft messages quickly and with the appropriate tone for any situation.
Another practical application is in summarizing lengthy digital conversations. AI tools can extract the most relevant points and present them in a “too long; didn’t read” (TLDR) format. TLDR features are particularly valuable in professional settings where time is of the essence, enabling users to quickly grasp the key takeaways from long emails or threads.
Search functionality is also being revolutionized by AI. Beyond improving cloud-based searches, AI is making on-device searches more powerful.
Users can now search for specific files or photos with greater accuracy and speed, even if they don’t remember exact details. This is because AI can interpret vague or partial queries, making it easier to locate information stored on the device.
Apple’s AI is turning Siri into your ultimate assistant
Apple is leading the charge in integrating GenAI into its ecosystem through the Apple Intelligence platform. Apple’s new platform improves existing features and creates entirely new ways for users to interact with their devices.
One standout feature is the ability to generate images from simple word prompts. For example, typing the word “rooftop” can instantly create a detailed image of a rooftop scene in a city. Images can then be animated or improved and easily shared in messages.
Siri, Apple’s voice assistant, also benefits from these advancements. With the integration of Apple Intelligence, Siri is now more capable of interpreting complex voice commands and providing accurate responses. Enhancements make Siri a reactive tool and a proactive assistant that understands context and user preferences more deeply.
New features are designed to make the smartphone an even more indispensable tool in users’ daily lives, blending convenience with advanced AI-driven capabilities.
Personalized AI assistants will know you better than ever
As GenAI becomes more prevalent in smartphones, the development of personalized and proactive AI assistants is gaining momentum. Assistants are designed to learn from users’ behaviors and preferences, tailoring their responses and actions accordingly.
If a user frequently books rides at a certain time of day or orders food from a specific restaurant, the AI assistant can anticipate these needs and suggest actions without the user having to initiate them.
Over time, the assistant becomes more attuned to the user’s lifestyle, providing recommendations and performing tasks with minimal input.
The move toward personalized AI assistants is driven by the goal of creating a seamless interaction between the user and the device, where the smartphone acts almost as an extension of the user’s intentions.
Higher levels of personalization are expected to become a key selling point for future smartphones, as users seek devices that can intuitively understand and assist them in their daily routines.
As these AI assistants become more sophisticated, they will play an increasingly important role in managing not just digital tasks but also real-world activities, further embedding smartphones into the fabric of everyday life.
The AI smartphone boom is just getting started
The smartphone market is on the brink of a substantial transformation driven by the widespread adoption of generative AI (GenAI) technologies. As AI capabilities become more integrated into mobile devices, the market dynamics are set to shift dramatically, influencing everything from consumer behavior to technology investment strategies.
Understanding these changes is key for staying competitive in the rapidly evolving mobile industry.
AI smartphones will dominate the market by 2028
AI’s integration into smartphones is progressing at an extraordinary pace. By 2028, it is projected that 70% of all smartphones will be genAI-enabled, marking a big leap from current levels, driven by a combination of consumer demand, technological advancements, and competitive pressures among manufacturers.
In 2024 alone, shipments of AI-enabled smartphones are expected to surge by over 360%, reaching 234.2 million units; a figure that represents 19% of the total smartphone market for that year, indicating a strong shift towards AI-driven functionalities as a key differentiator in the mobile market.
Substantial growth is fueled by advancements in AI hardware, the increasing availability of AI-powered applications, and a consumer base that is increasingly seeking more intelligent and personalized smartphone experiences.
Rapid AI adoption is no longer confined to premium devices.
While early adopters of genAI technology are flagship models like the iPhone 15 Pro and Samsung Galaxy Z Flip6, mid-range and eventually even lower-end devices are expected to incorporate these features as component costs decrease. Such democratization of AI capabilities across price tiers is likely to drive even more significant market penetration, making AI a standard feature in most smartphones within the next decade.
AI is driving the next smartphone boom
Integrating genAI into smartphones is set to catalyze a new wave of upgrade cycles, impacting both consumers and manufacturers. IDC forecasts that shipments of genAI smartphones will grow by 73.1% year-over-year in 2025, highlighting the strong consumer demand for AI-driven functionalities.
By 2028, it is projected that 912 million genAI smartphones will be shipped, mirroring a compound annual growth rate (CAGR) of 78.4% from 2024 to 2028. This growth trajectory is unprecedented in the history of mobile technology, indicating that AI is not just a feature but a fundamental shift in how smartphones are perceived and utilized.
For consumers, this means that the traditional reasons for upgrading—such as improved cameras or faster processors—are now being supplemented by the promise of smarter, more responsive devices that can anticipate and meet their needs more effectively.
For manufacturers, AI brings an opportunity to drive revenue growth through new product launches and to capture market share by leading in AI innovation.
AI is moving closer to you with edge computing
Migration of AI workloads from cloud computing to edge computing shows a change in how AI processes are handled. In edge computing, data is processed closer to its source—on the device itself or within a localized network—rather than relying on centralized cloud servers.
Processing data at the edge improves functionality by reducing latency, which is crucial for real-time applications such as augmented reality, voice recognition, and autonomous driving. It also improves privacy, as sensitive data remains on the device rather than being transmitted over the internet, thereby reducing the risk of interception or unauthorized access.
From a cost perspective, edge computing significantly reduces the need to transfer large volumes of data to and from central data centers, which can be both expensive and time-consuming. Localizing data processing means companies can achieve better performance and lower operational costs, making AI more scalable and accessible.
The future is bright for AI-powered devices
The shift to edge computing brings opportunities for expansion in AI systems and services. As more AI processes are moved to the edge, there is a growing demand for localized computing power, storage, and intelligent algorithms capable of functioning independently of the cloud.
Vendors specializing in AI hardware, software, and services stand to gain from this transition. There is a significant market for edge computing solutions that cater to the needs of AI-driven devices, including smartphones, IoT devices, and autonomous systems.
Localized cloud instances, where cloud-based services are run closer to the user, also open up new revenue streams for cloud service providers. When offering hybrid models that combine the power of the cloud with the responsiveness of edge computing, vendors can meet the diverse needs of modern AI applications, further driving the adoption of AI technologies across various sectors.
How AI is solving real-world problems on your phone
AI algorithms are increasingly capable of handling complex, unstructured data such as language, images, and sounds, making them invaluable in addressing real-world challenges. New capabilities are particularly beneficial in smartphone applications, where real-time processing and immediate feedback are essential.
AI-driven language processing tools on smartphones are now sophisticated enough to perform real-time translations, assist with voice-activated tasks, and even generate content like emails and messages based on user preferences.
Advancements bring convenience and have practical applications in areas like accessibility, where AI can help visually impaired users navigate the world by describing their surroundings or translating text to speech.
In healthcare, AI on smartphones is used for monitoring vital signs, managing chronic conditions, and providing telemedicine services.
As AI continues to evolve, its ability to address and solve real-world problems will only grow, making it an indispensable tool in daily life.
The tech specs powering the AI in your pocket
The technological underpinnings of genAI smartphones are a key factor in their performance and capabilities. At the heart of these devices is the system-on-a-chip (SoC) architecture, which integrates multiple processing units, including the central processing unit (CPU), graphics processing unit (GPU), and Neural Processing Unit (NPU), into a single chip.
NPUs are specifically designed to handle the parallel processing requirements of AI tasks, making them essential for running on-device AI models quickly and efficiently. These units are capable of performing 30 tera operations per second (TOPS) or more, using the int-8 data type, which is an 8-bit integer format optimized for AI computations.
This level of processing power is necessary to handle the demands of modern AI applications, from real-time language translation to image generation and augmented reality. As AI models become more complex, the need for powerful NPUs will only increase, driving further innovation in SoC design.
The move towards more efficient and capable AI processors will not only improve the performance of AI applications but also extend battery life by optimizing power consumption during intensive tasks.
A balance of power and efficiency is key as manufacturers strive to deliver high-performance AI capabilities in increasingly compact and portable devices.
Why GenAI is the fastest growing trend in smartphones
The rapid growth of genAI in smartphones is reshaping the mobile market, bringing advanced AI capabilities to a broader audience and fundamentally changing how users interact with their devices.
The pace at which genAI is being integrated into smartphones is unprecedented in the history of mobile technology. Within the first three years of its introduction, market penetration is expected to exceed 60%, detailing the widespread adoption and demand for AI-powered features.
The most transformative phase of this integration is anticipated in 2026, when genAI technology is expected to become standard in mid-range devices. 2026 will be a crucial turning point, as it will make advanced AI functionalities accessible to a much larger segment of the market, driving further democratization of technology.
As AI becomes more embedded in smartphones, it is set to change how users engage with their devices, making them smarter, more intuitive, and more capable than ever before. Rapid integration signals a new level in mobile technology, where AI is a core component of the smartphone experience.
