Chyung Eun-ju
Samsung Electronics has introduced the first globally launched AI-powered smartphone, marking a significant shift in the AI landscape. This launch is being considered a game changer, particularly as AI has gained immense prominence worldwide. While the United States and China were previously seen as leading the race to become the world's top AI economy, South Korea was seen as lagging behind. The Galaxy S24 smartphone positions Samsung as a frontrunner in the AI market. This development is believed to be crucial in rejuvenating the South Korean economy.
The Galaxy S24, S24+ and S24 Ultra smartphones are primarily focused on artificial intelligence functionalities that surpass a simple voice assistant capable of performing basic tasks. The new devices have typical upgrades like improved cameras, brighter displays and new color options with a novel titanium material.
This will place Samsung ahead by at least eight months compared to the upcoming iPhone series, though it remains uncertain if Apple intends to incorporate on-device AI in its upcoming batch this year. CES in January highlighted AI integration into various gadgets, from cat doors to beds.
However, for Samsung, the stakes are particularly high. The company had a significant sales decline in 2023, falling behind Apple for the first time in terms of volume. Samsung experienced a nearly 14 percent drop in global smartphone shipments to 226.6 million units in 2023, marking its second consecutive year of decline, as reported by market research firm IDC in January. The smartphone market overall has faced sluggishness, with unit sales declining in six of the last seven years, based on IDC's data.
Joel Cho
In a UBS report this year, analysts predicted that AI smartphones could capture 16 percent of the global market, selling around 190 million units in their first year. The report also highlights an anticipated increase in personal computer sales in 2024, attributing it in part to AI-enabled devices.
The general public is still getting friendly with ChatGPT or Bard, and it may take a while for people to get used to the AI device, but YouTube reviews and social media responses are quite upbeat. Technology-focused YouTuber Marques Brownlee, who recommended the phone to his subscribers, said in a review, "This phone now has a ton of helpful AI features built-in that are actually good. They make a meaningful difference to everyday use." He then goes on to demonstrate some features of the new photo editor built into the device, Samsung's new Magic Editor.
"You can move the subject around a photo and have a generative AI fill in the background. [...] Or you can have it remove things entirely from the foreground or the background of a photo."
He also demonstrates the new smartphone's live phone call translation feature and other AI functions.
Although South Korea trails behind the U.S. in the AI race, according to developers, Korea is in a favorable position to advance AI technology. The country boasts one of the most connected populations globally, facilitating the generation of extensive data for training AI systems. Additionally, its prominent tech companies have substantial resources for significant research investments. The government's supportive stance is evident through financial backing and data provision to companies, particularly for training large language models, which form the basis of AI chatbots.
Companies like Naver, LG and Samsung are actively shaping AI systems tailored to local needs. Naver's Clova X does what ChatGPT lacks. As it was designed for Korean speakers, it recognizes idioms and slang, integrating with the search engine for shopping and travel. LG's EXAONE, a generative AI model, targets businesses and researchers, aiding in various fields like chemistry research. Samsung's Gauss, an internal generative AI model, is set to be integrated into phones and smart home appliances. Other South Korean firms, including KT and Kakao, are also developing large language models for specific languages and domains, making South Korea a hub for diverse AI systems.
In summary, Samsung's launch of the Galaxy S24 series with advanced AI features represents a pivotal moment for the company and South Korea in the global technology landscape. This strategic move places Samsung as one of the frontrunners in the AI race, presenting an opportunity for economic revitalization, in a market constantly looking for innovation. The Galaxy S24 series exemplifies the transformation of smartphones into truly intelligent devices. However, the maintenance of sustained success in the dynamic AI market will require continuous innovation and adaptability as we move forward into the future.
Chyung Eun-ju (ejchyung@snu.ac.kr) is a marketing analyst at Career Step. She received a bachelor's degree in business from Seoul National University and a master's in marketing from Seoul National University. Joel Cho (joelywcho@gmail.com) is a practicing lawyer specializing in IP and digital law.