2024-08-31 - tech

AI mobile phone, the horn is sounded

How can smartphones make a comeback? In 2024, many bets are placed on generative AI smartphones. According to market research firm Counterpoint Research, by the end of 2027, shipments of smartphones with built-in generative artificial intelligence will exceed one billion units. In this trend, Samsung and Qualcomm will become the direct leaders. Similar to foldable devices, Samsung is expected to capture nearly 50% of the market share in the next two years, followed by Chinese OEM manufacturers such as Xiaomi, Vivo, Honor, and Oppo.

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Will 2024 be the inaugural year for AI terminals?

Samsung's AI smartphone, the Galaxy S24, can be said to have fired the first shot. At the end of 2023, Samsung released the Galaxy S24 Ultra, Galaxy S24+, and Galaxy S24. The Samsung Galaxy S24 series introduces AI advantages to smartphones, empowering easier communication and interaction, more efficient productivity, clearer imaging, and more detailed editing through Galaxy AI, promoting the widespread adoption of AI innovation achievements.

In daily office work, Galaxy AI can also help users improve work efficiency. When urgently recording important information, users can not only use Samsung Notes to quickly record but also use the newly added note assistant to intelligently format the note content, suitable for different scenarios such as meetings or classrooms, and can intelligently generate summaries and covers for notes, facilitating organization and search. During important meetings, through the transcription assistant in the recorder, with the help of on-device AI capabilities, it can be easily converted to text without the need for an internet connection, while also being able to distinguish different speakers and translate text content. After connecting to the internet, it can also generate content summaries. The Samsung Galaxy S24 series further explores user intentions and, in conjunction with WPS AI capabilities, helps users generate various documents, providing richer and more valuable content.

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Recently, artificial intelligence research company OpenAI launched an online store, GPT Store, beginning to offer it to paying users, teams, and enterprise users. The store gathers custom versions of ChatGPT created by users for various tasks and is seen by the industry as an AI upgrade of Apple's App Store.

In the wave of generative AI smartphone transformation, mobile phone companies achieve their goals through two models. One is faster and more secure on-device AI. Unlike cloud AI, this model does not involve the process of information transfer but is directly processed and responded to on the phone, with data retained on the user's phone. The other is more accurate and economical hybrid cloud-edge AI, where cloud and edge AI work together to process tasks, leveraging the distributed computing power of the cloud to increase computing power and reduce AI processing costs; at the same time, contextual information from the terminal such as the user's location and identity can also be put to good use, improving the accuracy of AI processing. Currently, with the update and iteration of SoCs and the recent rapid upgrade of storage configurations in the market, most Chinese mobile phone companies adopt a hybrid cloud-edge AI deployment model, but they are also beginning to focus on on-device AI.

Faced with the sluggish growth of the smart terminal market, mobile phone companies hope to use generative AI smartphones to start a new round of growth cycles. Market research firm IDC data shows that in 2023, global smartphone shipments fell by 3.2% year-on-year, with shipments reaching a ten-year low. Market research firm Canalys predicts that the demand for on-device AI capabilities is expected to stimulate a new round of device replacement, helping to raise the average selling price of devices, and AI capabilities will become an effective point for Chinese mobile phone manufacturers to promote high-endization. Some analysts point out that generative AI will bring the biggest change in user interaction since the transition from feature phones to smartphones, is expected to become a new growth driver for the smartphone market, and will significantly change the market size and accelerate the upgrade speed.

Generative AI can bring real experience upgrades to users. Industry insiders say that generative AI will become the interface between people and all applications on smartphones. In the past, users needed to click and open one application after another to get information, but AI is bringing a new way of interaction. The AI engine on the user's phone will run continuously, its responsibility is to predict user behavior and keep learning, and complete collaborative work with all applications. In the future, users will be able to buy new phones based on their desire for generative AI capabilities, and this powerful technological change can drive changes in the mobile phone market.

In addition, generative AI smartphones will become an effective point for Chinese mobile phone companies to promote high-endization and internationalization. As Chinese manufacturers transform towards a high-end strategy, the market still needs a new driving force beyond technologies such as foldable screens and 5G. AI, especially the ability to run generative large models on the hardware side, will boost the growth of the high-end market. The strategic focus of manufacturers on AI deployment is also closely linked to the path of high-endization, and AI capabilities will also become an effective point for manufacturers to promote high-endization.AI has become an essential component of the mobile experience.

Why invest so much? For each of these manufacturers, the ultimate goal is to enhance the user experience on their devices. The stakes could not be higher, as we have reached the pinnacle of smartphones, with the global market saturated and smartphones now virtually ubiquitous. Phone manufacturers are combining the best microprocessor hardware with AI software to provide the best experience and attract customers from competitors.

The current state of AI in the mobile field:

AI in cameras: AI has already made its way into the cameras of most high-end smartphones. AI algorithms can help identify whether a panorama or a person is being photographed and adjust to provide the best filter types for the user. AI is also likely to assist in finding the right camera position suitable for lighting conditions.

AI and machine learning in "Siri" and other voice assistants: Today's smartphones have basic virtual assistant capabilities and are rapidly improving. Now, some voice recognition can offer better understanding levels than humans, even in noisy environments. Over time, virtual assistants may become an essential part of our mobile interfaces, with the natural human language they provide being interpreted by AI.

Humanized image search: Many phones have already automatically improved images (for example, by removing detected red-eye) and assist in sorting through the images taken and stored in the gallery in a humanized manner - by the names of friends, for instance. Some gallery software will automatically piece together a story about how the weekend was spent, in the form of photos, animations, and music taken that day.

AI is a key contributor to augmented reality experiences: The dedicated AI processors in these specialized smartphone chips (often referred to as neural processing engines or similar) are also used for augmented reality experiences on the device, such as Apple's emoji expressions.Daily Operations: Artificial Intelligence (AI) is the mastermind behind Google's core search engine, making adjustments behind the scenes in applications such as battery life management and security every time a search is conducted via mobile phone.

Facial Recognition Ensures Security: AI is also a contributing factor to facial recognition, which you can use to unlock an iPhone using the images from the onboard camera. It can also create a 3D image of the face for identity verification in payment services like Apple Pay, as well as for logging into applications such as banks and the railway's 12306 app. The AI and machine learning algorithms of the camera can recognize the owner's face, even if they put on or take off glasses, apply makeup, or change their hairstyle.

AI has already contributed to a good device experience, and the field is strategically important for maintaining a leading position in the smartphone market, which has reached its peak. Therefore, every mobile manufacturer is accelerating investment in the field of AI-based user experience.

This has led to the creation of many specially designed microprocessors that can perform the mathematics involved in AI and machine learning calculations more quickly and efficiently—two of the most critical requirements for mobile devices, using less power.

Huawei was the first company last year to embed a neural engine in its smartphones, which they call the Kirin processor/970 chipset with "built-in AI." At the time, their software could process up to 2000 images per minute. This processor has been included in their Mate series.

In addition to Huawei, Apple has also designed a microprocessor for AI and is opening up its A12 "Bionic" AI chip, which is also designed to perform AI tasks more efficiently. Apple has equipped AI chips in the iPhone 8, 8X, and 8 Plus.

AI and machine learning are also increasingly appearing in smartphone software. AI has become a key part of Google's applications on the Pixel 3: for example, "Now Playing" is an application Google has been using in music recognition. The Pixel 3 also has a "call screener" feature, which can verbally answer calls on the screen, interact verbally with the caller on the other end, and summarize what they say in text format for the owner to review whether to call them back.

It is no exaggeration to say that the smartphone industry is undergoing revolutionary changes due to the prospects of AI and is being built around the prospects of AI. Currently, the great opportunity for AI is to help guess what we want next. Often, when AI is at its best, we users are likely not aware that it is working.

The user interface is crucial to the success of the phone, so major phone manufacturers are heavily investing to ensure the best experience and use AI to push the field forward.

This is just the beginning, as over time, these microprocessor chips suitable for AI computing on mobile devices will become cheaper, and they may not only enter every phone through 5G connections to the internet but also enter every connectable device in the world.