Research: Are Consumers Ready for the AI-Embedded Smartphone?
As Apple prepares to launch Apple Intelligence, a new survey commissioned by Amdocs and conducted by Dynata reveals that consumer attitudes toward AI in smartphones vary significantly across generations.
As hype builds for the iPhone 16 launch this September, Apple is positioning Apple Intelligence as a key selling point. This new platform leverages artificial intelligence (AI) to enhance experiences like writing, device performance, photo editing, as well as supercharging Siri. And Apple is not alone here: Google and Samsung have also made AI a centerpiece of their latest smartphone lineup.
But how ready are consumers for a smartphone evolution that hinges so heavily on AI?
To find out, we commissioned a survey with Dynata of 1,000 U.S. consumers to determine attitudes toward AI-enabled smartphones. Our findings reveal a growing divide in AI awareness that varies significantly across generations, a demand for seamless integration, and concerns around data security.
"Our findings highlight the expansive nature of GenAI technology, especially among younger generations who are adopting it at a rapid pace, while also emphasizing concerns about how it’s being used," said Anthony Goonetilleke, Group President of Technology and Head of Strategy at Amdocs. “As we see GenAI seamlessly integrated into major devices like the iPhone, it brings both incredible opportunities and important challenges to light."
The Generational Divide: Who’s Actually Excited About AI?
While it’s no secret that younger generations tend to jump on the new technology train sooner than others, we found a stark generational divide in awareness and interest in AI-enhanced smartphones. Nearly half of Gen Z (45%) is highly aware of Apple’s upcoming Apple Intelligence announcement, compared to just 14% of baby boomers.
But it’s not just about awareness—it’s about actually going out and grabbing a new device. While 41% of overall consumers say AI integration makes them more likely to purchase a new smartphone like the iPhone 16, this jumps to 52% for millennials and 59% for Gen Z. These numbers suggest that AI could be a major selling point for the younger demographic.
When it comes to wanting to use AI-embedded features, this trend among younger generations continues; 65% of Gen Z and 70% of millennials are highly likely to explore and use these AI-enabled features, compared to only 40% of baby boomers.
What Do Consumers Actually Want from an Intelligent Smartphone?
While excitement for AI in smartphones is growing, the majority of consumers surveyed agree on one thing: seamless integration is important. Over half of our respondents (56%) would be more willing to use AI technology if it’s well embedded into their smartphones.
Consumers also know what they want from AI: enhanced privacy and security measures (51%) and improved photo and video editing tools (48%) top the list of desired features. However, with 75% of consumers expressing concerns about how their data is used by AI, tech companies face the challenge of balancing innovation with transparency and security.
How Big of a Barrier are Trust and Security Concerns?
As AI becomes more prevalent in our everyday lives, a major challenge remains: consumer trust. Sixty-nine percent of consumers have varying levels of concern about how their personal data is being used.
Further, we found a notable gap in consumer awareness regarding AI security measures. Almost a third (31%) of respondents admitted they are not very aware of the security features companies implement in their AI-driven smartphones, while 21% are not aware at all.
Despite these concerns, nearly half (48%) of consumers agree that AI integration will improve their overall smartphone experience. If companies like Apple, Google and Samsung can address security concerns through enhanced measures and better communication, they could further boost consumer confidence in AI-powered smartphones.
“While nearly half of consumers recognize the potential for improved smartphone experiences through AI, there is also a clear demand for advanced privacy and security features,” said Anthony Goonetilleke. “This dual focus on innovation and addressing consumer concerns will drive the future of AI adoption as it becomes incorporated into our daily lives.”
The Future Looks Bright for the AI-Embedded Smartphone
As the iPhone 16 and Apple Intelligence launch approaches and Google and Samsung lean heavy on AI as well, its integration in smartphones is set to be a major differentiator in an increasingly competitive market.
For consumers, the future promises smartphones that are not only smarter but also more intuitive and capable of transforming everyday tasks. For tech companies, the challenge lies in delivering these experiences while addressing the very real concerns of their users. As AI evolves, so too will consumer expectations, making this an exciting space to watch.
Whether you’re excited about the rise of AI or skeptical of its impact, one thing is clear: it’s set to redefine the smartphone experience, and once that change takes hold, there’s likely no turning back.
