Worldwide end-user spending on generative AI (GenAI) smartphones is set to accelerate, reaching $298.2 billion in 2025, according to the latest forecast from Gartner. This will represent 20 percent of total AI end-user spending in 2025, underscoring the growing role of GenAI in reshaping the smartphone market.
By 2026, spending on GenAI smartphones is projected to hit $393.3 billion, marking a 32 percent increase from 2025. The adoption curve highlights how on-device AI capabilities are becoming central to the next wave of smartphone innovation.
What Are GenAI Smartphones?
Gartner defines GenAI smartphones as devices equipped with a built-in neural processing unit (NPU) or neural engine capable of running small language models (SLMs) directly on the device.
Key details:
Forecast includes both premium smartphones and basic smartphones under $350.
Utility smartphones are excluded, as they are not expected to support NPUs.
Premium smartphones will lead adoption, with Gartner forecasting that 100 percent of them will feature GenAI capabilities by 2029.
The Role of NPUs in Driving GenAI Adoption
NPUs are designed to handle AI-specific workloads efficiently, allowing smartphones to run models faster while reducing power consumption.
In 2025, Gartner predicts that almost all premium GenAI smartphones will include NPUs, while 41 percent of basic models will adopt them.
By 2027, performance levels of 40 tera operations per second (TOPS) in NPUs will become the standard for premium devices, enabling real-time multimodal AI execution across text, image, and voice tasks.
This evolution will significantly enhance conversational AI experiences, making AI-driven assistants more natural, proactive, and context-aware.
Changing User Behavior: From Reactive to Proactive AI
Currently, most smartphone users still rely on text input or touch commands, while voice interactions remain limited. According to Ranjit Atwal, Senior Director Analyst at Gartner, conversational AI will soon evolve into a proactive digital companion, shifting user behavior away from command-based interactions.
This means future GenAI smartphones will not only respond to queries but also anticipate user needs, offering a more seamless and intelligent mobile experience.
Market Outlook: GenAI Smartphones to Dominate by 2029
The growth trajectory indicates that GenAI smartphones will dominate the premium segment in the coming years:
2024: $244.7 billion in GenAI smartphone spending across 260.4 million units.
2025: $298.2 billion in spending across 369.3 million units.
2026: $393.3 billion in spending across 559 million units.
As adoption expands into both premium and affordable segments, GenAI smartphones are set to become the default standard for mobile devices by the end of the decade.
Conclusion
With Gartner projecting exponential growth in GenAI smartphone adoption, the industry is on the cusp of a major transformation. As on-device NPUs enable faster, more efficient, and real-time AI processing, smartphones will shift from being reactive communication tools to becoming proactive AI-powered companions.
By 2029, every premium smartphone will integrate GenAI, setting the stage for a new era in mobile computing and user experience.
Baburajan Kizhakedath
