While generative artificial intelligence (AI) continues its steady trot to mainstream adoption, a new report has pointed to the mobile AI segment as a key driver of growth for the nascent industry.
Analytics Insights said that the mobile AI market is expected to reach a valuation of $39.91 billion before the end of 2028. Currently, the valuation of the sector is pegged at $12 billion, with the report predicting a compound annual growth rate (CAGR) of 26.78% over four years.
The report highlights several reasons for the proposed spike in valuation, including the widespread use of mobile devices and advancements in software. Innovations associated with natural language processing (NLP) software and its incorporation into mobile devices are touted as a leading factor to drive growth.
Experts say computer vision software for facial recognition and augmented reality “amplifies the capability of mobile AI” in ways previously unimaginable. Despite the giant strides in software, the report warns that a “symbiotic relationship” has to exist with hardware for mobile AI to achieve its full potential.
The prediction for a 26.78% CAGR is also fueled by massive capital injections by leading technology firms in the ecosystem. To avoid falling behind the pecking order, Samsung, Intel, and Qualcomm Technologies have invested funds to develop mobile AI offerings for end users.
“As industry leaders strategically align with AI-driven initiatives, it catalyzes a ripple effect, fostering an ecosystem where innovation is not only encouraged but also supported financially,” the report read.
The report cites an increasing demand for AI in enterprise applications, underscored by mobile AI’s increasing role in business strategies as firms turn to emerging technologies to improve workplace productivity.
Edge computing and the increasing adoption and development of Internet of Things (IoT) devices offer significant potential to jolt the valuation of mobile AI. In the end, the report envisions a future for AI outside of the cloud but domiciled on mobile devices to improve users’ privacy and data security.
Big players go mobile
Leading players in the generative AI space have turned to releasing mobile versions of their offerings in a race to seize market share from their peers. OpenAI, makers of ChatGPT, rolled out Android and IOS versions of the large language model (LLM), allowing users to sync history across several devices.
Barely 24 hours after Baidu launched Ernie Bot in 2023, the offering soared to the top of most downloaded free mobile apps in the Chinese App Store, racking millions of downloads along the way.
Apple (NASDAQ: AAPL) and Samsung are in a two-horse race to roll out an advanced AI mobile device, with OpenAI expected to make a foray into AI hardware space.
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