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- Bank of America analysts predict AI will create a new class of devices called 'IntelliPhones.'
- AI enhancements could make phones more context-aware and proactive.
- There's a new battle brewing over who will create the most useful AI-powered phone.
The first cellphone came out in the early 1980s. It was connected to a cellular radio system and didn't require a physical connection to a network.
Then, we had feature phones. These connected to the internet and could store and play music.
Apple ushered in the smartphone era, with location data, fancy cameras, and the all-important App Store.
Is AI about to launch a new chapter? Analysts at Bank of America Securities think so. And they've come up with a new name for this future device.
The "IntelliPhone."
Yes, it's an awful name. Too many syllables. No one is ever going to say, "Ugh, I can't find my IntelliPhone. Have you seen it?"
However, artificial intelligence models, chatbots, and other AI-powered applications could get so useful that our current smartphones might look kinda dumb in the future.
Maybe no one will have to ask where their IntelliPhone is, because it will somehow find itself.
"Context awareness will be the key differentiator," Wamsi Mohan, an analyst at Bank of America Securities, wrote in a research note on Wednesday that listed a number of future capabilities that may take these gadgets way beyond current handsets.
Hype warning
A word of caution here. The AI hype cycle is in overdrive right now, and Mohan and his colleagues were writing a research note about Apple ahead of its WWDC conference next month.
The company is expected to unveil a slew of new AI features for iPhones at this event. It's common for Wall Street analysts to issue positive research and "buy" recommendations in instances like this.
The mother of all upgrade cycles
Still, Mohan makes some compelling arguments. If AI tools on phones can really set them apart from current devices, consumers have a new reason to buy a fresh handset.
"We see the introduction of AI smartphones (IntelliPhones) as a once in a decade upgrade event," Mohan wrote.
At Google's I/O conference earlier this month, the internet giant showed off several new AI capabilities for Pixel, Samsung, and other Android phones.
"It's a once-in-a-generation moment to reinvent what phones can do," Android chief Sameer Samat told Business Insider. "We are going to seize that moment."
Consumers will only embrace these new devices if they're actually useful in everyday situations. Google has already shown off some of these new killer applications for AI. Apple will have to show off more of these powerful use cases at WWDC if it's going to keep up.
Mohan at BofA describes a wide range of new capabilities that could set IntelliPhones apart from smartphones and fire up the mother of all upgrade cycles.
"We view the upcoming AI enabled phones (IntelliPhones) to drive a multi-year upgrade cycle similar to the step function improvement driven by the introduction of smartphones," he wrote, calling this a "once in a decade type of event."
IntelliPhone capabilities
Here are some of the potential capabilities of IntelliPhones, according to BofA:
Context aware assistance: AI-enabled phones will offer more advanced personal assistants that understand context better and provide more relevant and timely responses.
Proactive suggestions: These assistants could proactively suggest actions based on user patterns.
Object and scene recognition: These phones can identify objects, people, and scenes in photos and suggest actions like sharing, searching for more information, or buying related products.
Real-time translation: AI-capable phones offer real-time language translation making communication easier while traveling or interacting with people who speak different languages.
Predictive health alerts: AI could predict potential health issues by analyzing patterns in collected data and alert users to seek medical advice if needed.
AI driven content creation: Users may be able to create more immersive and engaging AR/VR content with the help of AI tools on phones that simplify the creation process and enhance the final output.
Music Haptics: AI could refine vibrations from music to improve the experience for phone users who are deaf or hard of hearing.
Vocal Shortcuts: AI could recognize speech patterns and improve speech recognition for users with conditions that affect speech such as cerebral palsy, or those who have suffered a stroke. Users could also assign custom utterances that Siri can understand to launch shortcuts and complete complex tasks.