Google and OpenAI lead shift toward AI-agent smartphones

The smartphone industry is transitioning toward a model where artificial intelligence agents, rather than traditional applications, drive user interaction. Google recently unveiled ‘Gemini Intelligence’ at its Android Show 2026, describing a shift from a standard operating system to an ‘intelligence system.’ This new AI layer for Android is designed to perform multi-step tasks—such as booking appointments, ordering groceries, and navigating apps—by understanding user context and proactive suggestions. These features are expected to roll out on Samsung Galaxy S26 and Google Pixel 10 devices later this year.

Simultaneously, OpenAI is reportedly working on an AI-centric smartphone in collaboration with former Apple designer Jony Ive. This project aims to reimagine computing through context-aware devices centered on AI interactions rather than screens and icons. OpenAI has furthered its hardware ambitions by acquiring Ive’s startup, io, in a deal valued at $6.4 billion. This technological shift is particularly significant for India, the world’s second-largest smartphone market, where Android holds a dominant market share.