3 min readNew DelhiUpdated: Jul 15, 2026 08:45 AM IST
If you are among those who feel AI features are superficial additions to smartphones, you may want to think again. Capitalising on the ongoing AI wave, smartphone brands are increasingly shipping devices with AI features. A new report by CyberMedia Research (CMR) claims that 77 per cent of consumers actively use AI-powered photography features and as many as 71 per cent engage with generative AI features multiple times a week.
The same report claims that 82 per cent of those surveyed admitted that transparent data practices are critical to AI trust. And 69 per cent identified chipsets as key enablers of AI experiences. The study shows a fundamental shift in how Indian consumers assess their smartphone purchases.
“AI is no longer viewed as an added feature; it is increasingly shaping the overall device experience. Across demographics and price segments, consumers expect AI that is useful, intuitive, and seamlessly integrated into everyday interactions,” said Prabhu Ram, VP – Industry Research Group (IRG), CMR.
With AI being increasingly integrated into smartphones, consumers seem to be seeking AI experiences that are secure and align with their privacy concerns. And, perhaps this has pushed trust as an emerging factor in AI adoption and key purchase decisions. As many as 61 per cent believe that on-device AI processing improves both responsiveness and privacy. According to Prabhu Ram, as consumer expectations evolve, AI capabilities will play a growing role in smartphone differentiation and purchase decisions going forward.
What about AI engagement?
According to the report, 57 per cent of consumers clearly understand and actively use AI features; at the same time, 43 per cent engage only partially. Among the most active users, while 49 per cent are heavy users who regularly engage with five or more AI features, 41 per cent are moderate users, and 10 per cent only engage when prompted. The research claims that the moderate user segment is key to untapped potential for the smartphone industry.
Meanwhile, the report also draws a sharp divide between generational users. As many as 72 per cent of Gen Z consumers feel AI is a driving factor for their next smartphone purchase when compared to 65 per cent of millennials. When it comes to gender, 66 per cent of female consumers opt for camera and imaging use cases, while 42 per cent of male consumers use AI for productivity and communication purposes.
The report also underscores the growing awareness among consumers about chipsets. Consumers are increasingly evaluating smartphone purchase decisions based on the AI capabilities across platforms. As many as 68 per cent of consumers feel chipsets are key enablers of AI performance across gaming, smoothness, image quality, responsiveness, and battery optimisation.
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“As AI utility deepens and consumer literacy around chipsets and on-device processing grows, the competitive battleground is moving from hardware specifications to experiential trust. Consumers increasingly evaluate AI experiences through the lens of trust, privacy, and real-world utility,” said Sourabh Pandey, analyst at CMR.
“This shift is likely to influence how AI is designed, communicated, and differentiated across future smartphone generations,” he added.
