ChatGPT Debut In Phone: Smartphone Makers Are Vying With One Another To Create ChatGPT-Like Mobile Software, Will It Affect The Purchasing Decision Of Indian Buyers?

Artificial intelligence is the secret ingredient in the arsenal of every smartphone brand, big or small, to differentiate themselves amidst a sea of saturated hardware and dipping sales, from capturing the moon’s craters with a smartphone camera to adding the Northern Lights to the drab Delhi sky, and even editing one’s nose shape. Almost every smartphone brand’s marketing materials reference AI and machine intelligence in the expectation that buyers would grab onto them while making a buying choice. For example, the latest Google Pixel phones can unblur a blurry photo, remove an undesired object from the frame, translate voice messages and recordings to text, and do live translations.

Samsung uses machine learning and neural networks (a subset of AI) to reply to incoming calls on the user’s behalf, create Instagram-worthy reels by merging photographs and videos from the camera, and optimise power consumption to extend battery life. The latest flagship smartphone from the Korean manufacturer can snap realistic images of the moon. The AI algorithms identify the moon as a distinct object and apply detail improvement methods to the image. 

Xiaomi phones can simulate the Northern Lights and change the sky’s hue from foggy to sunny. These are just examples of two smartphone giants; there are many such names in the list. And practically every smartphone now has a night mode that automatically takes many images at different exposures and merges them to produce a dazzling image, even in low-light situations. 

For a long time, smartphone manufacturers have employed AI models and machine learning to differentiate themselves. 

On-device AI apps have grown increasingly common as technology has become more powerful over time with the incorporation of AI engines, says Akshara Bassi, senior research analyst at Counterpoint Research. Before the introduction of ChatGPT-like apps, AI was employed in a recommendation manner. She described Google Assistant, Siri, and Alexa as “very rudimentary forms of AI” that rely on speech or text commands to reply with an action.

According to Counterpoint Research, the finest AI experience is found in premium smartphones, a sector nearly doubling in market share in Q1 2023 in India. Premium devices powered by Qualcomm and MediaTek flagship chipsets feature specialised AI engines to offer intelligence in an instant. Mid-range and entry-level smartphones, on the other hand, must still rely on the cloud for processing. As a result, many entry-level smartphones only offer rudimentary AI functions such as a night mode or a voice assistant that requires an internet connection to give results.

But the issue remains: does the ordinary Indian customer consider AI characteristics while purchasing?

India is a country with a majority of middle-class income groups. In such a case, will everyone infuse their hard-earned money to reap the benefits of AI on smartphones or not is a big question! Also, how much the mobile will add to their lives plays a very important role in making that final purchasing decision.

According to TechArc’s principal analyst Faisal Kawoosa, customers don’t care if a feature is driven by AI. As long as the photographs are upgraded sufficiently to be shared directly, customers are unconcerned whether this is accomplished through AI or another method. He also stated that while customers like AI-enabled capabilities, they only make purchasing decisions based on utility.

According to Counterpoint’s Bassi, buyers still prefer to look at the technical characteristics rather than the functions that use the hardware. For example, the average Indian smartphone user will choose a device with a large battery over one with a short battery enhanced with AI algorithms. Yes, we are so much into that charm of ‘long battery life’ that it cannot go so quickly from our minds.

It’s always a game of numbers. Consumers assume that higher is better. However, there is always a moment of having something new. These new generation folks are more conscious about buying behaviours, and numbers may not always attract them. They may be ready to pay more if the subject comes with a better quality or with a premium feature. Bassi believes that with the recent introduction of generative AI, consumers will become more conscious of the usage of AI, raising concerns about privacy and demanding such features on their devices.

The race between players.

Smartphone manufacturers are racing to add generative AI application cases. Google demonstrated how customers might create their backgrounds using text prompts at the Google I/O conference earlier this month. Qualcomm and MediaTek have indicated they are attempting to optimise their chipsets for such applications. With ChatGPT now available on iPhones, users will no longer have to go through the learning curve of what AI is and what it can accomplish. As a result, it may become a deciding factor in the future. People believe it will take at least another year to see those generative AI-enabled unique features in smartphones.

Let’s see whether ChatGPT can replicate its desktop beauty on smartphones.

Proofread & Published By Naveenika Chauhan