68% consumers prioritise AI features when buying smartphones: CMR report
Synopsis
AI has crossed a threshold in Indian smartphone buying: it now outranks price, design, and battery life as a purchase driver, per a CMR report. With 68% of consumers prioritising AI features and 77% already using AI cameras weekly, the moderate-user majority is the industry's next big conversion opportunity.
Key Takeaways
68 per cent of consumers prioritise AI features when buying a smartphone, per a CyberMedia Research (CMR) report released on 13 July .
82 per cent cited transparent data practices and trust as key purchase drivers.
AI ranked ahead of design, price, and battery life in smartphone purchase decisions.
61 per cent said on-device AI processing improved both responsiveness and privacy.
77 per cent actively use AI imaging features such as low-light enhancement and portrait optimisation.
71 per cent used generative AI features — search, summarisation, translation — multiple times per week.
Nearly 68 per cent of Indian consumers now prioritise AI features when purchasing a smartphone, while 82 per cent cite transparent data practices and trust as key purchase drivers, according to a new report released on Monday, 13 July by CyberMedia Research (CMR). The findings signal a decisive shift in how consumers evaluate devices, with AI moving from a novelty to a non-negotiable.
AI Now Outranks Design, Price, and Battery Life
The CMR report identifies performance (78 per cent), camera quality including AI enhancements (70 per cent), and strong AI features (59 per cent) as the top three attributes consumers weigh before buying a smartphone. Notably, AI-related attributes ranked ahead of design, price, and battery life — categories that have historically dominated purchase decisions.
Among consumers choosing between similarly-priced devices, 60 per cent insisted on a balance of AI capability and strong hardware, unwilling to compromise on either. A further 25 per cent were identified as outright AI-first buyers, while only 15 per cent remained hardware traditionalists.
On-Device AI and Privacy Confidence
Privacy concerns, long a friction point in AI adoption, appear to be easing. 61 per cent of respondents said on-device AI processing improved both responsiveness and privacy — a finding that underscores growing consumer comfort with AI that operates locally rather than through the cloud. This comes amid broader global debates around data sovereignty and the handling of personal information by technology platforms.
How Consumers Are Actually Using AI
Around 57 per cent of consumers said they clearly understand and actively use AI features, while 43 per cent engage only partially. Among active users, 49 per cent are heavy users who regularly engage with five or more AI features, 41 per cent are moderate users, and 10 per cent use AI only when prompted.
The moderate user segment — the largest cohort — represents what the report describes as 'significant untapped potential' for the smartphone industry. Converting these partial adopters into consistent users could be the next battleground for device makers.
Photography Leads AI Adoption
AI imaging remains the strongest entry point into everyday AI use, with 77 per cent of consumers actively using features such as low-light enhancement, portrait optimisation, and intelligent scene detection. Separately, 71 per cent of respondents used generative AI features — including AI-assisted search, summarisation, writing support, translation, and conversational interfaces — multiple times per week.
Industry Outlook
'AI is no longer viewed as an added feature; it is increasingly shaping the overall device experience. Across demographics and price segments, consumers expect AI that is useful, intuitive, and seamlessly integrated into everyday interactions,' said Prabhu Ram, Vice President – Industry Research Group, CyberMedia Research (CMR). Ram added that as consumer expectations evolve, AI capabilities will play a growing role in smartphone differentiation and purchase decisions going forward. For device manufacturers, the message is clear: AI integration is no longer optional — it is the new baseline.
Point of View
Not just a trend line. When AI outranks price in a price-sensitive market like India, it signals that manufacturers who treated AI as a premium-tier differentiator may need to rethink their mid-range roadmaps fast. The 43 per cent partial-engagement figure is the one to watch: that cohort is not sceptical of AI — they simply haven't been given a compelling enough reason to go deeper. Whoever solves that UX problem at the ₹15,000–₹30,000 price band stands to reshape the next upgrade cycle. The trust signal — 82 per cent flagging data transparency — is also a quiet warning to cloud-heavy AI implementations that Indian consumers are paying attention to where their data goes.
NationPress
13 Jul 2026
Frequently Asked Questions
What did the CyberMedia Research smartphone AI report find?
The CyberMedia Research (CMR) report, released on 13 July, found that 68 per cent of consumers now prioritise AI features when purchasing a smartphone, with AI ranking ahead of design, price, and battery life as a purchase driver. It also found that 82 per cent of consumers consider transparent data practices a key factor in their buying decision.
Which AI features are most used by smartphone consumers?
AI imaging features are the most widely used, with 77 per cent of consumers actively using low-light enhancement, portrait optimisation, and intelligent scene detection. Additionally, 71 per cent use generative AI features — including AI-assisted search, summarisation, writing support, and translation — multiple times per week.
How do consumers feel about on-device AI and privacy?
61 per cent of consumers said on-device AI processing improved both responsiveness and privacy, suggesting growing comfort with AI that operates locally on the device rather than through cloud servers. This aligns with the 82 per cent who flagged data transparency as a purchase driver.
What share of consumers actively use AI features on their smartphones?
57 per cent of consumers said they clearly understand and actively use AI features, while 43 per cent engage only partially. Among active users, 49 per cent are heavy users engaging with five or more AI features regularly, 41 per cent are moderate users, and 10 per cent use AI only when prompted.
What does the CMR report mean for smartphone manufacturers?
The report signals that AI integration is now a baseline expectation rather than a premium differentiator, particularly as AI outranks price and design in purchase decisions. The large moderate-user segment represents untapped potential, and manufacturers that improve AI usability across mid-range devices stand to gain the most in the next upgrade cycle.
