A coming wave of AI-capable smartphones may let vendors distinguish their devices via unique features and user experience, but it also poses challenges for privacy and potential user disillusion if there is too much hype.
The first involves GenAI applications on smartphones using on-device models fine-tuned with data drawn from chat, context and geolocation to"enhance user interactions significantly" via AI agents and privacy-protected service recommendation engines. One factor most likely to affect the success of AI smartphones is whether this is something users actually want. Canalys carried out a study resulting in what calls the"AI Inclination Index" based on six survey questions, and claimed that overall, the consumer audience is"cautiously positive" about AI capabilities.
Canalys also found differences between various regions worldwide, which it said highlights the importance of localized marketing campaigns."AI inclination" was strongest in places such as China and India, with 43 percent expressing high or very high interest in China. As far as user concerns with AI go, the survey found privacy and data security risks were by far the biggest factor. This is likely apprehension about the potential collection, storage, and utilization of personal data by AI algorithms, Canalys says. More than half of respondents indicated they were concerned with AI access to their personal data, something vendors should take note of.
Canalys says that current AI smartphone purchases are being driven by tech enthusiasts, but that a second wave of adoption, expected through 2025 and into 2026, will be driven by the value optimizers. Vendors will need to invest in their products and marketing to build confidence and awareness with these buyers as they seek to upgrade their devices.
The first sees vendors already integrating generative AI functions directly into apps or as features on smartphones, positioning them as key marketing points. These typically involve specific use cases or tasks, citing examples such as"AI eraser," or"circle to search."