The shipment of generative AI-driven smartphones is likely to reach over 100 million units next year, a report showed on Wednesday.

By 2027, GenAI smartphone shipments are likely to reach 522 million units, growing at a CAGR of 83 percent, according to Counterpoint Research.

The share of GenAI smartphones will be 4 percent of the market in 2023 and is likely to double next year.

“The share of GenAI smartphones in the overall smartphone market will be in single digits through next year. But those numbers will not accurately reflect the amount of excitement and marketing hyperbole we are expecting to see,” said Research Director Tarun Pathak.

“Next year is about learning and we expect GenAI smartphones to hit an inflection point in 2026 as the devices permeate through the broader price segments,” he added.

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GenAI smartphones are a subset of AI smartphones that use Generative AI to create original content, rather than just providing pre-programmed responses or performing predefined tasks.

These devices will run size-optimized AI models natively and come with certain hardware specifications.

According to the report, the short-term GenAI landscape sees OEM roadmaps touching on four main areas – info provisioning, image building, live translation, and personal assistant applications. Samsung and Qualcomm are immediate leaders as current product offerings and capabilities position them as first movers.

“AI has been a feature of smartphones for the last few years. We now expect to see the emergence of smartphones optimized to run GenAI models in addition to the normal use of AI in smartphones,” said VP & Research Director, Peter Richardson. The likely use cases will include creating more personalized content, smarter digital assistants with unique personalities and conversation styles, content recommendations, and more, he added.

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