STAMFORD, Conn., September 9, 2025 — Worldwide end-user spending on generative AI (GenAI) smartphones is projected to reach $298.2 billion by the end of 2025, according to Gartner, Inc. This will represent 20% of total AI end-user spending in 2025.
Gartner defines GenAI smartphones as devices equipped with a built-in neural engine or neural processing unit (NPU) capable of running small language models. The forecast includes both premium smartphones and basic smartphones (priced under $350), but excludes utility smartphones, which are not expected to feature NPU capabilities.
“Currently, most users still rely on text or touch for everyday tasks, with voice interactions remaining limited in scope. However, as conversational AI becomes more natural, users are expected to increasingly view AI as a proactive digital companion rather than just a reactive tool,” said Ranjit Atwal, Senior Director Analyst at Gartner.
With mobile vendors rapidly integrating on-device GenAI models and applications, end-user spending on GenAI smartphones is forecast to rise to $393.3 billion in 2026, an increase of 32% from 2025. Gartner also projects that by 2029, 100% of premium smartphones will feature GenAI capabilities.
“The broad adoption of NPUs in smartphones will enable GenAI models to run faster and more efficiently, encouraging users to upgrade to the latest hardware for optimized experiences,” Atwal added. “By 2025, Gartner forecasts that nearly all premium GenAI smartphones will feature NPUs, and 41% of basic GenAI smartphones will also include them.”
By 2027, Gartner expects on-device NPUs with performance levels exceeding 40 tera operations per second (TOPS) to become standard in premium GenAI smartphones, enabling real-time execution of complex multimodal AI workloads without excessive power consumption.
thank you for this