Will ‘AI Devices’ Define The Next Decade?

By Cosmo Elms

Generative AI is poised to revolutionize the smartphone market with stunningly advanced features and personalized user experiences.

As the massive smartphone market has begun to plateau, big changes appear afoot in the consumer device world.

Apple’s (AAPL) former chief design officer, Jony Ive, is reportedly in advanced discussions with ChatGPT creator OpenAI to build the “iPhone of artificial intelligence (AI)”, with SoftBank CEO Masayoshi Son committing over $1 bn to the venture.

It has been widely reported that the trio plan to draw on talent and technology from their companies – including Son’s recent acquisition, the chip designer Arm (ARM) – to create a device that provides a “more natural and intuitive user experience” for AI interaction, and they’d like to take the iPhone head-on.¹

While a completely new and redesigned “AI device” could disrupt the massive smartphone market in the long run, we are seeing significant developments that could revitalize it in the near term.

For example, the new iPhone 15 has incorporated some groundbreaking features incorporating AI technology. Powered by the A17 Bionic chip, it enables users to relive their most cherished memories in three dimensions via immersive “spatial videos” viewed through the upcoming Apple Vision Pro headset.

The new iPhone’s camera is also smart enough to detect the presence of people or pets in the frame, allowing it to automatically adjust to “portrait” mode and let users edit the focus afterward.

Meanwhile, chip companies Qualcomm (QCOM) and MediaTek are aiming to add advanced AI capabilities into smartphones and throughout the mobile app ecosystem.

We believe using a decentralized approach promises a more efficient way of processing computations, enabling faster responses and the ability to function without internet access. (AI chatbots, by contrast, rely on connecting to the cloud to run AI models.)

Adding AI capability to smartphones could allow the devices to create more personalized experiences based on users’ individual preferences. With each interaction, AI gains a deeper understanding of users’ tastes, thereby allowing the device to generate increasingly customized recommendations.

For example, imagine starting your day with your iPhone suggesting the perfect breakfast based on ingredients available in your fridge. Later, it curates a personalized itinerary based on your location, time of day, and interests. And while you shop, it analyzes your browsing history and fashion sense to guide you toward boutiques that align with your personal style.

We also believe AI could fortify Apple’s mobile application ecosystem by adding intelligent virtual assistants, personalized productivity apps and myriad other tools that could transform our daily lives. In our view, the future of the smartphone is here – and with it, a world of possibilities.

Source: (1) Reuters

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