Artificial intelligence next key growth area for smartphones

Artificial intelligence (AI) is one of the next big growth areas for the mobile industry according to a white paper released by IHS Markit, a world leader in critical information, analytics and solutions, ahead of Mobile World Congress. “We see AI making smart devices even smarter with improved user experiences,” said Ian Fogg, director of mobile and telecom analysis at IHS Markit. “Existing AI agents like Apple’s Siri and Google Assistant will expand across the industry, complemented by embedded AI in all parts of mobile devices from cameras, to audio, to machine.”

Software investments and partnerships are critical for hardware companies to create smarter AI-enabled experiences, said the white paper. Vendors such as Google, Apple, Sony, Microsoft and Samsung have heavily invested in the development of their own AI and voiceassistant capabilities. In order to compete, smaller players with less inhouse software expertise and resources will be looking to partner-up. The AI opportunity comes at a time when the global smartphone installed base is still growing. By 2020, the smartphone-installed base will exceed six billion units, up from four billion in 2016.