Indian consumers enjoy a plethora of features from smartphones, including AI, which is fast becoming the driving force behind the industry’s growth. Smartphone brands, both big and small, are using AI to differentiate themselves from the competition, with everything from capturing perfect photographs to adding to the Delhi sky. Most smartphone brands’ marketing materials make references to AI, expecting consumers to grab onto them while making their buying decision. Such features are influencing consumer behaviour in the purchasing process.
Artificial intelligence is the secret ingredient at the core of every smartphone brand, big or small. However, Indian buyers are still yet to catch on to the great ChatGPT feature as their primary purchasing decision. AI is being integrated into everything a phone does, from making unblurry photos to translating voice messages and recordings to text. Samsung’s newest flagship phone is capturing realistic images of the moon, with artificial intelligence algorithms enhancing the quality of the photo.
According to Akshara Bassi, senior research analyst at Counterpoint Research, in India, on-device AI apps have grown more common as technology has become more robust over time. However, before the introduction of ChatGPT-like apps, AI was used solely in a recommendation manner. AI engines can now be found in premium smartphones, with a market sector nearly doubling in market share in Q1 2023 in India. These phones are powered by Qualcomm and MediaTek flagship chipsets, with specialized AI engines that offer intelligence in an instant.
However, special features do not always mean utilitarian benefits for buyers, according to Faisal Kawoosa, principal analyst at TechArc. Customers do not care how a feature is driven by AI as long as the photographs are upgraded enough to share directly. With the younger generation being more conscious of buying behaviour, they may not be attracted to numbers or higher specs. They may be ready to pay more if the subject comes with a better quality or premium features.
ChatGPT brings generative AI application cases to smartphones, with great expectations for future integration into smartphones. Qualcomm and MediaTek have indicated that they are playing catch-up to optimize their chipsets for generative AI applications. With ChatGPT now available on iPhones, users no longer have to go through the learning curve of what AI is and what it can do. As a result, this feature may become a prime decision-making factor in the future.
For now, Indians are yet to embrace ChatGPT as a key deciding factor in their smartphone purchasing decisions, with consumers preferring technical characteristics over functions that use hardware. It may take more time for consumers to understand generative AI and become comfortable with using it. However, with companies racing to introduce generative AI application cases, it is just a matter of time before Indians fully embrace AI-powered features.
