Integration of artificial intelligence (AI) in smartphones has been going on for years to enhance imaging and establish new functionalities, such as text extraction from images and documents, training virtual voice assistants, improving voice call quality, and conserving power based on usage patterns.
Apple, the American technology giant, has employed AI in its Photos app to categorise albums based on subjects in photos. Similarly, the South Korean electronics manufacturer, Samsung, has utilised AI in the camera app to optimise colours, contrast, and depth for subjects in the frame. China’s Xiaomi, Realme, Vivo, Oppo, and OnePlus have employed AI to add beauty filters to portraits.
But today, AI’s criticality to the smartphone industry is more evident than ever.
“A significant push for AI in the smartphone space is crucial, as hardware alone is no longer a substantial differentiating factor,” says Tarun Pathak, research director at Counterpoint Research.
One of the reasons AI has become prominent, alongside device specifications, is the emergence of generative AI.
Pixel dust
The United States-based software giant, Google, has been emphasising AI-driven software enhancements, a key characteristic of the Pixel series since its inception in 2016. Google took the lead again by introducing the Pixel 8 series with a focus on generative AI and on-device AI applications.
“AI was mentioned numerous times during the Pixel 8 launch event. Clearly, this is where Google believes it can significantly differentiate and advance the Android ecosystem,” says Pathak.
Google has integrated generative AI experiences at the operating system level. For example, its experimental photo-editing tool, Magic Editor, allows users to customise photos by repositioning and resizing subjects in the frame or by enhancing the background with a simple tap. Traditional photo editing tools, on the other hand, involve a time-consuming process.
Google announced at the Pixel 8 series launch event that its custom-built Tensor G3 chip was designed to accelerate AI workloads and could run distilled versions of its text- and image-generating models. This implies that tools available on the Pixel 8 series utilise on-device AI to deliver innovative experiences. One such tool is Best Take, accessible through Google Photos, which uses an on-device algorithm to create a blended image from a series of photos, ensuring that everyone in the frame looks their best.
In isolation, these may appear as intriguing AI-related developments in the smartphone space. However, analysts advise caution regarding the potential consequences.
“Generative AI holds the promise of ushering in a transformative era of innovation and personalisation, potentially enabling smartphones to become remarkably intuitive, creative, and tailored to consumer needs and preferences. That said, smartphone OEMs would need to strike a fine balance towards responsible AI adoption to avoid potentially contributing to the rise of deep fakes and misinformation,” says Prabhu Ram, head-of Industry Intelligence Group at CyberMedia Research.
Decisive integration
Now that Pandora’s box has been opened, analysts anticipate that AI integration in smartphones will increasingly become a natural progression for brands to remain competitive. As consumer expectations evolve, AI capabilities could be decisive in the market.
“The infusion of AI in smartphones has transitioned from being a mere choice to an imperative. With Google positioning the Pixel 8 as the phone for the AI era, others will seek to step up their AI game to stay relevant in a hyper-competitive market,” says Ram.
Analysts believe smartphone manufacturers will forge partnerships with generative AI leaders such as Microsoft, Google, and Meta to run native applications on their devices starting in 2025.
“We anticipate that major smartphone OEMs, including the Chinese manufacturers, will begin running native generative AI apps in 2025, leading to a new set of apps that focus on on-device AI, which is likely to become more popular. Developers will also play a crucial role in this,” says Pathak of Counterpoint.