Canalys Report: AI Smartphones Surge Amid Privacy Concerns

The latest report from research firm Canalys shows that there are growing concerns about privacy on AI smartphones. As we already know, AI is going to be a major force driving the smartphone market this year. Many companies are launching PCs and smartphones which are AI powered. Recently, Microsoft launched its Surface AI PC which has CoPilot+ features. Some other companies have also launched their devices which are powered by AI. Canalys has predicted that due to AI, PC sales will increase by 8% this year.

The report from Canalys talks about how presence of AI in hardware of smartphones is capable of executing AI models and supporting real-time device inference. Many of the big smartphones like Samsung Galaxy S24, Google Pixel Phones and Apple iPhone 15 have integrated AI in the smartphones. About 16% of the smartphones that will be sold this year will be powered by AI while in 2028, the percentage will increase to 54%. This means that manufacturers of smartphones will have a huge advantage due to AI smartphones. But despite all that, manufacturers will also have to face some challenges and negative effects of that.
AI smartphones are generally safe to use but after studying 5000 participants, it was found that users are still facing privacy concerns due to AI capabilities. Canalys noted that these concerns are due to storage, usage and utilization of AI algorithms. The report says that over half of the participants in the survey are not sure if their data is safe. There are also some other problems like users not understanding AI use on those smartphones and their inability to use all the features on AI smartphones.

In the market of AI smartphones, Apple is going to take the lead with its iPhone with A17 Pro Chip which will offer a lot of features. About 55% of the AI smartphone market will be Apple's by 2025. It is because of its premium hardware and software, followed by a capable developer community.

Beyond the highest ranked concern, there are only minor differences between the remaining options, likely reflecting two aspects. First, most consumers are not sure what they should be worried about as many risks and use cases are unknown. Second, consumers might perceive they already share a significant amount of data from their smartphone and can trust the tech firm operating their device to professionally handle their data with the emergence of new technology on the device.

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