Generative AI (GenAI) has dominated the software landscape for the past two years. Now, it’s poised to transform the consumer hardware market. By the latter half of this year, we can expect the debut of GenAI smartphones. But what exactly is a GenAI phone, and why is it significant?
What is a GenAI Phone?
The term GenAI smartphone has gained traction recently, particularly in reports from significant marketing research firms. Counterpoint Technology Market Research states that a GenAI smartphone uses generative AI to create original content rather than merely performing predefined tasks. Gartner adds that these phones can locally run AI models to generate new versions of content, strategies, designs, and methods.
In essence, a GenAI phone has the following characteristics:
- Offers generative AI apps and tools, such as AI chatbots and AI image editing.
- Integrates these tools into the phone’s operating system for seamless use.
- It contains CPUs specifically designed to handle complex AI tasks.
- It has the power to run AI models natively without relying on cloud servers.
What Isn’t a GenAI Phone?
Based on these criteria, only some current smartphones qualify as GenAI phones. Most need more specialized chips to handle advanced AI tasks. For example, while many phones can run the ChatGPT app, they aren’t considered GenAI phones because the processing occurs on remote servers, not the device itself.
Currently, only the latest flagship models from Google and Samsung, like the Samsung Galaxy S24 series and the Google Pixel 8 Pro, come close to meeting these standards. Thanks to their powerful CPUs, these devices can run Google’s Gemini Nano AI model directly on the phone.
The Future of GenAI Phones
Although only a few flagship models are currently GenAI phones, this will change rapidly. Apple is set to unveil iOS 18 next month, which will introduce generative AI features to some existing iPhones. This could make Apple the leading manufacturer of GenAI phones despite having none today.
However, not all iPhones with the iOS 18 update will qualify as GenAI phones. It will depend on whether their chips are powerful enough to handle on-device AI tasks. The upcoming iPhone 16 series, expected in September, will likely be marketed as GenAI phones.
The rise represents a significant opportunity for smartphone manufacturers. With smartphone sales stagnating, generative AI could rejuvenate the market. Counterpoint Research predicts that while only 11% of smartphone shipments in 2024 will be GenAI phones, this figure will rise to 43% by 2027. By then, the global install base of GenAI phones will exceed 1 billion devices.
As the generative AI boom continues, consumers can expect a new era of advanced mobile technology, with GenAI phones leading the charge.
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