This presents Samsung with a pivotal opportunity to lead and shape the future of mobile artificial intelligence.
Samsung Galaxy AI and the Advancement of a New Era
While Google marked the beginning of the AI-driven smartphone era with the launch of the Pixel 8 and Pixel 8 Pro in October 2023, Samsung's concurrent release of the Galaxy S24 series and the introduction of Galaxy AI made artificial intelligence accessible to the mainstream consumer. According to Kantar Research, AI is projected to be a key factor in driving sales in 2024, with nearly 25% of consumers opting for a Galaxy S24 device due to its AI capabilities.
There are arguably two key players capable of significantly influencing consumer behavior and steering the future of smartphone innovation: Samsung and Apple. Apple is still in the process of rolling out its first version of the awkwardly named Apple Intelligence and is currently playing catch-up to the entire Android ecosystem, particularly Samsung.
In the meantime, Samsung is anticipated to unveil a major update to Galaxy AI at this week’s Galaxy Unpacked event. As 2025 approaches, the AI strategies adopted by the South Korean tech giant will likely set the standard for the industry. Through its Pixel lineup, Google has illustrated its vision for the future of smartphone AI. Samsung is poised to embrace this new path and capitalize on the opportunity to define the trajectory of mobile technology.
Samsung Galaxy AI and the Emerging Landscape
Samsung is not alone in its pursuit of innovation within the AI sector. In 2024, every major smartphone manufacturer introduced its unique take on artificial intelligence and generative AI. With each new release, the concept of AI-integrated smartphones transitioned from being a novelty to becoming a fundamental aspect of modern devices. Anthony Scarsella from IDC noted the industry's shift, stating, "GenAI-capable devices are primed and ready to become the next significant offering for consumers."
Last year, Galaxy AI entered a market that was still grappling with uncertainty. Consumers were unclear about the capabilities of AI, its benefits, and the necessity of incorporating it into their smartphones. However, the surge of Android smartphones over the past year has clarified these concerns. In 2025, Galaxy AI is set to debut in a market that is no longer filled with doubts and apprehension; instead, it will launch into a well-established environment where questions have been addressed, and enthusiasm has replaced anxiety.
Methods for Purchasing the Samsung Galaxy AI
This shift allows Samsung to focus on advancing and innovating rather than merely establishing a foothold in the market.
AI smartphones incorporate significant local components that facilitate on-device AI processing. Nevertheless, many popular and heavily marketed AI features depend on cloud-based servers to provide quick and precise results. This is particularly true for several high-demand media functionalities. The operational costs of generative AI can be substantial, especially when scaled across millions of devices.
Not all AI services come at no cost. Google has integrated Gemini Advanced into its Google One subscription, while OpenAI’s ChatGPT Pro is priced at $200 per month, as CEO Sam Altman indicated a desire to generate revenue. Additionally, smaller AI-focused companies, like the music-oriented SunoAI, require subscriptions to access their full range of services.
The threshold has been crossed, yet Galaxy AI continues to be offered as a complimentary service, both on-device and in the cloud. However, this may not hold true indefinitely. Samsung's fine print for 2024 indicated that "Fees may apply to certain AI features at the end of 2025." As a dominant force in the global market, should Samsung opt to monetize Galaxy AI, it would pave the way for other hardware manufacturers to provide "AI as a Service" to their customers, potentially adopting a similar freemium model as seen in various sectors of the AI industry.
Final Thoughts on Samsung’s AI Strategy
In 2024, Samsung positioned itself at the forefront by launching the Galaxy S24 as an AI-centric smartphone. This strategy resulted in heightened sales and increased consumer awareness, allowing Samsung to influence market growth and establish pricing standards for AI services. With the upcoming release of the Galaxy S25 series, Galaxy AI is poised for significant advancements that could further enhance Samsung's market position.
Last year, Samsung capitalized on its first-mover advantage with consumers, maximizing its impact. Now, it has the opportunity to broaden that lead and significantly shape the integration, acceptance, and monetization of AI technologies.