AI is no longer just an added feature on smartphones but is increasingly influencing how Indian consumers choose their next device, as per a new CyberMedia Research (CMR) report. According to the CMR Smartphone AI Pulse 2026 report, which is based on responses from more than 2,000 smartphone users aged 18 to 35 in eight Indian cities, consumers are increasingly focusing on AI capabilities, privacy, and experience rather than hardware specifications.
As per the report, around 82 per cent of respondents said transparent data practices would improve their confidence in AI-powered smartphone features, while 61 per cent believed on-device AI processing offers better privacy and faster performance.
As per the survey, 72 per cent of Gen Z respondents said AI will play an important role in their next smartphone purchase, compared to 65 per cent of millennials. Performance remained the top purchase criterion at 78 per cent, followed by camera quality with AI enhancements (70 per cent) and AI features themselves (59 per cent). The study also found that 60 per cent of buyers want a balance between powerful hardware and AI capabilities, while 25 per cent identified themselves as AI-first buyers. Only 15 per cent said they still prioritise traditional hardware over AI.
Photography continues to be the most common AI use case, with 77 per cent of respondents regularly using AI-powered imaging tools such as scene optimisation and low-light enhancement. Meanwhile, 71 per cent reported using generative AI features for tasks such as search, writing assistance, translation and summarisation multiple times a week.
The report also talked about the growing consumer awareness of the role chipsets play in delivering AI performance. Around 68 per cent of respondents said processors impact AI capabilities such as gaming performance, image processing, responsiveness and battery optimisation. Awareness was highest among Gen Z users, where the figure reached 83 per cent.
CMR also noted that consumers are paying closer attention to how AI is processed on devices rather than solely relying on cloud-based services.