AI features are becoming an important factor in smartphone buying decisions among young Indian consumers, according to a new CyberMedia Research (CMR) report. The report also found that buyers are paying closer attention to privacy and user experience.
The CMR Smartphone AI Pulse 2026 report surveyed more than 2,000 smartphone users aged 18 to 35 across eight Indian cities. The findings show that AI is steadily moving from an optional feature to an important consideration during the buying process.
The survey found that 72% of Gen Z respondents noted that AI will influence their next smartphone purchase. The figure stood at 65% among millennials. Performance ranked as the top buying factor, with 78% of respondents selecting it as a priority. Camera quality supported by AI features followed at 70%, while 59% stated that AI capabilities themselves would influence their choice.
The report also found that 60% of buyers prefer smartphones that offer a balance between hardware performance and AI features. Another 25% described themselves as AI-first buyers. Only 15% confirmed that they continue to place traditional hardware specifications ahead of AI.
Consumers are also paying closer attention to how AI works on their smartphones. According to the report, 82% of respondents said clear and transparent data practices would increase their confidence in AI-powered features. Nearly 61% believed that processing AI tasks directly on the device offers stronger privacy, along with faster performance. The findings suggest that users are becoming more aware of how personal data is handled while using AI-powered applications and services.
Photography is the most widely used AI feature on smartphones. The report said 77% of respondents regularly use AI-powered camera tools such as scene optimisation and low-light enhancement. Another 71% use generative AI features several times a week for search, writing assistance, translation, and summarisation. These results indicate that AI is becoming part of everyday smartphone use rather than being limited to occasional features.
The study also highlighted growing awareness of the role smartphone processors play in delivering AI performance. Around 68% of respondents said chipsets directly influence AI functions such as gaming, image processing, responsiveness, and battery optimisation. Among Gen Z users, awareness was even higher at 83%.
CMR also noted that consumers are increasingly evaluating how AI processing is handled on smartphones instead of focusing only on cloud-based services. The findings point to a broader shift in consumer expectations. Buyers are looking beyond hardware specifications and increasingly evaluating AI performance, privacy standards, and practical everyday features before choosing their next smartphone.