As the adoption of generative artificial intelligence accelerates, more IT will be carried out in the hands of end users – literally. Increasingly, AI will be integrated into consumption devices such as smartphones, notebooks, portable devices, cars and drones, creating new opportunities and challenges for manufacturers of these devices.
The phenomenal capacities of generating AI are with a high intensity of power. Until now, the treatment required to execute traditional sophisticated and generative models can only take place in the cloud. Although the Cloud will remain the basis of AI infrastructure, more AI applications, functions and services require faster or more secure information closer to the consumer. “This stimulates the need for AI algorithms that operate locally on the devices rather than a centralized cloud – or what is called tip AI,” explains Ed Stanley, Leader of Morgan Thematic Research Stanley in London.
By 2025, Edge AI will be responsible for half of all the corporate data created, according to an estimate of the Gartner Inc. technology researcher although there are many obstacles to reach commercial viability, ‘Opportunity to draw on 30 billion devices could reduce the cost, increase, increase personalization and improve safety and confidentiality. In addition, faster algorithms on the edge can reduce latency (i.e. the timelessness time of an application because it communicates with the cloud).
“If 2023 was the year of generative AI, 2024 could be the year when technology moves to the edge,” explains Stanley. “We believe that this trend will register steam in 2024, and with it, opportunities for equipment manufacturers and component suppliers who can help put AI directly in the hands of consumers.”
The new smartphones lead the charge
Smartphones currently on the market are based on traditional processors and cloud -based IT, and the only AI compatible programs are features such as face recognition, vocal assistance and low -light photography. Apparatus sales have slowed down in recent years, and many investors expect smartphones will follow the trajectory of personal computers, with multi -year slowdowns, because consumers keep their devices longer due to the lack of new features , from prices and other factors.
But thanks in part to Edge AI, analysts of Morgan Stanley think that the smartphone market is ready for a recovery and predict that shipments, which have slowed down since 2021, will increase by 3.9% this year and 4.4% ‘Next year.
“Given the size of the smartphone market and the familiarity of consumers with them, it is logical that they open the way by putting AI at the forefront,” explains Erik Woodring, American material analyst of Morgan Stanley. “This year should provide a deployment of AI compatible generative systems, as well as new generation devices and voice assistants that could stimulate a cycle of smartphones upgrades.”
However, displacement to the edge will require new smartphone capacities, in particular to improve battery life, energy consumption, processing speed and memory. Manufacturers with the strongest brands and balance sheets are better placed to take the lead in the material arms race.
Killer applications
In addition to equipment, AI itself continues to evolve. New generations of AI models are more flexible and adaptable for a wide range of uses, including on -board devices. The other beneficiaries include smartphone memory players, integrated circuits manufacturers and camera suppliers from the camera that support new AI applications.
What can you expect from your phone next year?
- The “still detecting cameras” that automatically activate or lock the screen by detecting if the user looks at it without the need to touch the screen. This feature could also automatically launch applications such as online payment and food order by detecting bar codes.
- GESTURES COMMANDS When the user is unable to hold his devices, such as when cooking or exercising.
- Office quality game experiences that offer ultra-realistic graphics with cinematographic details, all with smoother interactions and fascinating response times.
- Professional level photograph in which the image processors improve photos and videos in real time by recognizing each element in a frame – doors, hair, glasses, objects – and amendments each, eliminating the need for retouching later.
- Smarter vocal assistance which is more reactive and has adjusted user voice and discourse models, and can launch or suggest applications based on hearing clues.
“With Edge IA being part of daily life, we see important opportunities to come, because new equipment offers developers a platform to create generation of revolutionary generation applications, which could trigger a new cycle of material product that raises sales of services, ”explains Woodring.
For deeper information and analyzes, ask your Morgan Stanley’s representative or financial advisor for complete reports, “Technological broadcasting: Edge AI – Curring Impetus” (November 7, 2023), “entering a Upcycle smartphone” (9 November 2023 ) And “Edge AI: Libers of products on the right track, but where are the killer applications?”