TL;DR:
- Artificial intelligence (AI) is the secret ingredient in smartphones, allowing brands to stand out in a saturated market.
- Smartphone brands heavily emphasize AI and machine learning capabilities in their marketing materials.
- AI enables features such as photo enhancement, object removal, transcription, live translations, and intelligent night mode.
- Premium smartphones with dedicated AI engines are leading the market, while mid-range and entry-level devices rely on cloud processing.
- Consumers prioritize utility and hardware specifications over AI features during their purchase decisions.
- The rise of generative AI will raise consumer awareness and demand for advanced AI capabilities.
- Smartphone brands are racing to incorporate generative AI into their devices.
- The integration of AI in smartphones is transforming the industry and shaping the future of user experiences.
Main AI News:
In the cutthroat world of smartphone competition, brands are turning to artificial intelligence (AI) as their secret weapon. From capturing stunning photos of the moon’s craters to transforming the colors of the sky, AI is revolutionizing the smartphone industry. In a market flooded with similar hardware and declining sales, AI and machine learning provide a means for brands to stand out and differentiate themselves.
The marketing materials of virtually every smartphone brand emphasize AI and machine learning capabilities, hoping to sway consumers’ purchase decisions. Take, for example, the latest Google Pixel phones, which can magically unblur hasty photos, remove unwanted objects from frames, transcribe voice messages into text, and even offer real-time translations. Similarly, Samsung leverages machine learning and neural networks to handle incoming calls, create captivating Instagram-worthy reels by seamlessly blending photos and videos, and optimize power consumption for extended battery life.
One impressive feature of Samsung’s flagship smartphone is its ability to capture incredibly detailed photos of the moon. By employing sophisticated AI algorithms, the device recognizes the moon as a specific object and applies cutting-edge detail enhancement techniques to produce stunning shots. Xiaomi, on the other hand, offers a unique feature that allows users to change the sky’s color from cloudy to sunny and even bring the mesmerizing Northern Lights to Indian skies with impressively realistic results.
Another common AI-powered feature found in many smartphones today is night mode. This intelligent functionality combines multiple shots taken at different exposures, intelligently fusing them to produce well-lit photographs, even in low-light environments.
“While smartphone brands have been leveraging AI and machine learning to differentiate themselves for some time now, the inclusion of on-device AI applications has become increasingly widespread as hardware has become more powerful,” explains Akshara Bassi, a senior research analyst at Counterpoint Research.
Bassi highlights that prior to the rise of applications like ChatGPT, AI was mainly used in recommendation systems. Voice-based virtual assistants like Google Assistant, Siri, and Alexa represented the early stages of AI implementation but were limited in their capabilities. They relied on voice or text prompts to trigger predefined actions.
However, the true AI experience can now be found in premium smartphones, which have seen a significant surge in market share in India during Q1 2023, according to Counterpoint Research. These high-end devices, powered by flagship chipsets from Qualcomm and MediaTek, feature dedicated AI engines that deliver instantaneous intelligence.
Nevertheless, mid-range and entry-level smartphones still heavily depend on cloud processing for AI tasks. As a result, many of these devices offer only basic AI features like night mode or a voice assistant that requires an internet connection for optimal performance.
However, the pivotal question remains: Do Indian consumers truly consider AI features when making their purchasing decisions? Faisal Kawoosa, Chief Analyst at TechArc, suggests that most consumers are indifferent to whether a feature is AI-powered or not, as long as it enhances their photos and delivers satisfactory results. Consumers prioritize utility rather than the underlying technology. Hardware specifications tend to take precedence over AI-driven features for the average Indian smartphone user. For instance, they are more likely to choose a smartphone with a larger battery capacity rather than one optimized through AI algorithms.
“It’s always a numbers game. Consumers believe higher is better,” Kawoosa adds.
Nonetheless, Bassi anticipates that with the recent emergence of generative AI, consumers will become more aware of AI usage, raising concerns about privacy and demanding advanced AI features on their smartphones. Smartphone brands are now in a race to incorporate generative AI into their devices. At the recent Google I/O conference, Google showcased how users can generate personalized wallpapers using simple text prompts. Both Qualcomm and MediaTek have confirmed that they are actively working on optimizing their chipsets for these kinds of use cases.
“With ChatGPT now available on iPhones, consumers, especially those with premium handsets, will no longer face a learning curve regarding AI capabilities and its potential. Consequently, AI may become a deciding factor in future purchase decisions. However, it will likely take at least another year before smartphones offer differentiating features enabled by generative AI,” predicts Bassi.
Conlcusion:
Artificial intelligence has become a crucial element for smartphone brands to differentiate themselves in a competitive market. By leveraging AI and machine learning, smartphones can offer advanced features that enhance user experiences, such as photo enhancements, object removal, and real-time translations. While premium smartphones lead the way with dedicated AI engines, mid-range and entry-level devices still rely on cloud processing. Consumer preferences tend to prioritize hardware specifications, but the rise of generative AI is expected to increase awareness and demand for AI capabilities. Smartphone brands are actively working to incorporate generative AI into their devices, setting the stage for an AI-driven future in the smartphone industry.
