Worldwide end-user spending on generative AI (GenAI) smartphones is projected to reach $(US)298.2 billion by the end of 2025, according to Gartner.

GenAI smartphone spending, it says, will account for 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 encompasses both premium and basic smartphones priced under $350, while excluding utility smartphones, which are not anticipated to possess NPU capabilities.

End-user spending on GenAI smartphones is expected to increase to $393.3 billion in 2026, marking a 32% rise from 2025. Gartner predicts that by 2029, 100% of premium smartphones will feature GenAI capabilities. In 2025, nearly all premium GenAI smartphones are expected to include NPUs, and 41% of basic GenAI smartphones will have NPUs.

By 2027, on-device NPUs with performance levels exceeding 40 tera operations per second (TOPS) are expected to become standard in premium GenAI smartphones.

Gartner Senior Director Analyst Ranjit Atwal said, "Currently, most users still rely on text or touch for all tasks, and voice interactions remain limited in scope. However, as conversational AI becomes more natural in the future, users are expected to become more comfortable with AI as a proactive digital companion, rather than just a reactive tool."

Atwal added, "The broad use of new NPUs in smartphones will allow GenAI models to run faster and more efficiently, requiring users to upgrade to the latest smartphone hardware for optimized experiences."