Global end-user spending on generative AI (GenAI) smartphones is forecast to reach $298.2 billion by the end of 2025, accounting for 20% of all AI-related consumer spending, according to new research from Gartner, Inc.
GenAI smartphones are defined as devices with neural processing units (NPUs) capable of running small language models directly on the device. This capability, Gartner notes, will become mainstream as mobile vendors embed on-device AI across both premium and mid-range smartphones.
Worldwide spending on GenAI smartphones is projected to grow further to $393.3 billion in 2026, a 32% year-on-year increase. By 2029, Gartner expects 100% of premium smartphones to feature GenAI capabilities.
“Today, users still rely largely on text and touch, with limited voice interaction,” said Ranjit Atwal, Senior Director Analyst at Gartner. “As conversational AI becomes more natural, people will increasingly view AI as a proactive digital companion, not just a reactive tool.”
Growth Drivers
- Hardware upgrades: NPUs will become critical to enable real-time, multimodal AI without draining power. By 2027, Gartner expects premium smartphones to exceed 40 tera operations per second (TOPS).
- Adoption curve: In 2025, nearly all premium GenAI smartphones will include NPUs, while 41% of basic models (under $350) are forecast to integrate them.
- Performance demand: The broader use of NPUs will push consumers to upgrade devices for optimized AI experiences.
This rapid adoption positions GenAI smartphones as a key growth engine in the global AI economy, creating opportunities for hardware vendors, software developers, and ecosystem partners alike.
