25% of Smartphone Owners Don’t Want AI as Apple Intelligence Draws Near

Key takeaways:

• A quarter of smartphone owners (25%) don’t find AI features helpful, 45% are reluctant to pay a monthly subscription fee for AI capabilities and 34% have privacy concerns.
• A little over half (52%) of smartphone owners have no interest in purchasing a foldable phone.
• The biggest motivation for US adult smartphone owners to upgrade their devices is longer battery life (61%), followed by more storage (46%) and better camera features (38%). Just 18% say their main motivator is AI integrations.

AI has been the new hotness for some time. Manufacturers like Apple, Google and Samsung continue to put so much emphasis on AI features in their latest devices, but is the feature all that important to real-life smartphone users? A CNET survey found a quarter of smartphone owners don’t find those capabilities particularly useful, and just 18% say AI integrations are their main motivator for upgrading their phone. 

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In fact, the biggest drivers for buying a new device, according to respondents, is longer battery life (61%), more storage (46%) and better camera features (38%). 

This comes as Apple gears up for the public launch of its Apple Intelligence suite of AI features next week, which includes capabilities like a smarter Siri, AI-powered writing tools and ChatGPT integration. Apple Intelligence will be available on iPhone 15 Pro models and the iPhone 16 lineup.

Google also leaned heavily into AI features when it unveiled the Pixel 9 series in August, spending much of its keynote discussing new Gemini functions like Live, which lets you have a natural-sounding, back-and-forth conversation with the virtual assistant. And at its July Unpacked event, Samsung similarly touted Galaxy AI, which can simplify tasks like translating messages and editing photos.

While these new features rely on generative AI to produce text or images or to enhance digital assistants, AI itself has been embedded in smartphones for years. For instance, your phone’s camera uses AI to process images and blur backgrounds in Portrait mode, and Siri and Google Assistant have always been AI-based (albeit using less advanced versions of the tech). But because this new wave of AI introduces ways to more explicitly accomplish tasks on your phone, rather than blending into existing features, it may take some time for people to warm up to.

AI could soon cost you — and not everyone is sold

As tech giants continue to roll out these AI functions, consumers may soon have to pay the price if they want to keep using them. Samsung’s website says its Galaxy AI features “will be provided for free until the end of 2025 on supported Samsung Galaxy devices.” To utilize Gemini’s full power across Google’s apps, you’ll need to subscribe to Gemini Advanced. And it’s likely Apple could also someday charge for some of its AI-powered iPhone features.

Many consumers aren’t sold. Nearly half of smartphone owners say they’re not willing to pay extra money to access AI on their phones. That’s not much of a surprise, given how much subscription fatigue is already weighing people down. Another CNET study from April found that US adults spend an average of $91 on subscription services every month. Two-thirds of respondents said at least one of their subscriptions got more expensive within the last year. Adding yet another monthly fee, therefore, may not be so enticing. 

Still, there are those who are eager to tap into AI on their phones, with Gen Zers and Millennials being the most enthused: 20% of respondents from each generation say they’re excited about AI capabilities and find them helpful. Additionally, 15% of Gen Zers and 16% of Millennials use AI on their phones for tasks like photo editing, image creation and summarizing or writing text. Also, 20% of Gen Zers and 19% of Millennials regularly use an AI tool like ChatGPT or Google Gemini on their smartphones. 

Privacy remains a key concern when it comes to AI, with one-third (34%) of smartphone owners flagging their unease in that department. Tech giants have placed a growing emphasis on privacy considerations during their AI-focused keynotes. At its Worldwide Developers Conference in June, for instance, Apple noted many of its AI models run on-device, which is generally considered more private, since information doesn’t have to travel over the internet. When a task calls for more computational power, relevant data will be sent to Apple Silicon servers, and that data won’t be stored or made accessible to Apple, the company says. 

The biggest reasons to upgrade a phone

With AI being among the last reasons consumers want to upgrade their smartphones, other considerations like longer battery life, more storage and better camera features still dominate. Other motivators include phone display and screen size (32%); keeping the same ecosystem, like iOS or Android (24%); and phone color (10%). 

With the high cost of devices (many flagship phones will cost you anywhere between $800 and $1,200), consumers may not want to upgrade their devices as frequently. According to our survey, 44% claim they only get a new device when their current phone breaks or needs replacing. Further, 30% hang onto their devices for three years or longer, while 18% upgrade every two years and just 8% get a new phone every year. 

Luckily for consumers, Apple didn’t implement a price hike with the iPhone 16. Still, iPhone users hold onto their devices for longer than other smartphone owners; one-third will will wait three years or more for an upgrade.

Foldable phone hype just isn’t there yet

Companies like Google and Samsung have continued to roll out foldable phones, with the latest being the Pixel 9 Pro Fold and the Galaxy Z Flip and Fold 6, respectively. But consumers still feel lukewarm about the concept of a foldable handheld device. Just over half (52%) of smartphone owners say they’re not interested in buying a foldable phone, while 13% say they’d be interested sometime in the next two years.

That gives Apple, which has yet to enter the foldable phone space, the opportunity to tap into that interest. Experts have long speculated that a foldable iPhone could be what it takes to spur wider adoption of foldable smartphones. But it may be several years before that happens, if it ever does.

Methodology 

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,484 adults, including 2,387 smartphone owners. Fieldwork was undertaken Aug. 28-30, 2024. The survey was carried out online. The figures have been weighted and are representative of all US adults (aged 18-plus).