AI Features and Transparency Key in Smartphone Purchases, Reveals Report

AI features and transparent data practices are crucial factors for 68% and 82% of consumers, respectively, when buying smartphones, according to a report by CyberMedia Research (CMR). The study also found that 61% of consumers believe on-device AI processing enhances responsiveness and privacy.
Performance, camera quality with AI enhancements, and strong AI features are the top priorities for consumers, with AI surpassing design, price, and battery life as a purchase driver. When faced with similar-priced options, 60% of consumers seek a balance between AI and robust hardware, showing a reluctance to compromise on either aspect.
AI is now considered a fundamental aspect of the overall device experience, rather than just an additional feature, shaping consumer expectations across demographics and price ranges. Prabhu Ram, VP of Industry Research Group at CMR, emphasized the increasing importance of AI capabilities in smartphone differentiation and purchase decisions.
A significant portion of consumers actively engage with AI features, with 57% fully understanding and utilizing them, while 43% only partially engage. Among active users, 49% heavily utilize five or more AI features regularly, highlighting the potential for increased AI adoption.
Photography emerges as a key entry point for AI adoption, with 77% of consumers actively using AI imaging features such as low-light enhancement and intelligent scene detection. Generative AI features, including AI-assisted search and conversational interfaces, are also popular, with 71% of respondents using them multiple times per week.