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.
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Investments in AI-enabled technologies and features are increasing, but demand remains low
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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.
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About the collaboration
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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.
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"answer": "AI-enabled devices are products equipped with hardware or software that supports artificial intelligence applications, such as smartphones with AI chips, notebooks with AI features, or smart speakers.",
"question": "What are AI-enabled devices?"
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"answer": "According to the article, 43 percent of global smartphone revenue in October and November came from devices equipped with chips that enable AI applications.",
"question": "How much global smartphone revenue came from AI-enabled devices recently?"
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"answer": "Developed Asian countries show the highest share mentioned in the article, with 65 percent of smartphones being AI-enabled.",
"question": "Which regions show the highest adoption of AI-enabled smartphones?"
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"answer": "Consumer demand remains modest because AI capability is still a secondary purchase incentive. Many buyers may not yet understand clear use cases or benefits.",
"question": "Why is consumer demand for AI features still low?"
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"answer": "Only 6 percent of smartphone buyers in the second quarter of 2024 selected a device because of its AI functionalities.",
"question": "How many smartphone buyers chose a device for AI functionality in Q2 2024?"
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"answer": "Clear, well-founded consumer information about practical use cases and benefits can help increase acceptance and support more conscious purchasing decisions.",
"question": "What can increase consumer acceptance of AI-enabled devices?"
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"answer": "The smart speaker market shows that without sufficient consumer understanding and perceived value, sales can stagnate even when AI-enabled features are available.",
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