AI: A Double-Edged Sword? 

AI fascinates innovation leaders and market analysts with its potential to transform industries and boost economic growth. Although we are still at the beginning of its development, the spread of AI-enabled devices is accelerating. In October and November alone, 43 percent of global smartphone revenue came from devices equipped with a chip that enables artificial intelligence (AI) applications. From a regional perspective, there are significant differences: 65 percent of smartphones in developed Asian countries are AI-enabled, while Latin America lags far behind at 14 percent.

The industry is investing heavily in artificial intelligence, but what about consumers? According to GfK studies, a product’s AI capability is only a secondary purchase incentive. Only 6 percent of smartphone buyers in the second quarter of 2024 chose a device because of its AI functionalities – and only 12 percent of notebook buyers did the same. Despite these modest figures, manufacturers have high expectations that consumer interest in this area will increase.

What does it take to spark enthusiasm among consumers? Well-founded consumer information is often cited as the missing piece of the puzzle. Smart speakers are a clear example of how good information can lead to greater acceptance and more conscious purchasing decisions: In 2020, 45 percent of German consumers considered there to be a need for information in this segment. Since then, sales figures have stagnated. By 2023, smart speakers accounted for only 32 percent of revenue in home audio systems—the same share as in 2020. This shows how important it is for manufacturers and retailers to inform consumers about specific use cases and possibilities that demonstrate the benefits of AI-enabled devices. This can reach a broad audience—and justify premium prices.

Based on a partnership between NIQ/GfK, gfu and IFA Management, we provide you with regular updates on market developments and trends in the consumer electronics and home appliances industry. Interesting insights, current market figures, consumer trends and much more are professionally prepared for you from the sources of the three expert partners.