I don’t like AI and I’m hesitant about its adoption. But before you click away, let me explain that it’s because I do not believe any companies will responsibly deploy or apply the technology. I just don’t think the end result is going to end up being to the general population’s benefit. It will benefit soulless corporations and the 1%. That aside, it doesn’t mean that the technology isn’t promising or that it’s not innovative. And as it would appear, most people do support and want to use the technology. In fact, new data published by Assurant suggests that AI is actually driving smartphone upgrades and encouraging people to get the latest and greatest tech.
Called the Mobile Trade In and Upgrade Industry Trends Report, the bulk of the data reveals that consumers are upgrading their Android and iPhone devices specifically to ensure compatibility with AI capabilities. Nearly half of U.S. consumers expect their next smartphone to support AI. Meanwhile, 20% consider AI to be “very important” in their purchase decisions. There are some other notable trends, of course, but this is certainly the most eye-opening takeaway.
What does the mobile trends report tell us about AI and new smartphones?
We already know that AI has a growing influence on consumers and their upcoming purchase decisions. Nearly half of consumers expect their next device or next upgrade to support the technology. We can also infer from this information that means they’re relying more and more on it. Maybe for everyday tasks like scheduling, web queries, and even virtual assistance.
But another interesting tidbit from the report is that trade-in values have increased. U.S. consumers received trade-in values 5% higher than in 2023, on average. That’s interesting considering the prices of everything have climbed quite a bit. You would think trade-in values would decline as people would be willing to spend less on used or preowned devices, but that’s not the case.
Also interesting, the average age of turned-in Android and iPhone devices continues to decline. In other words, people are willing to trade in their old devices sooner, whether to get an upgrade or to replace their used gear. The launches of the Samsung Galaxy S24 series and the iPhone 16 did spur the increase in trade-ins. And the iPhone 13 replaced the iPhone 11 as the most turned-in device in the second half of 2024, while the iPhone 11 remained the most turned in device overall. The Galaxy S22 Ultra 5G was the most traded Android device in the second half of 2024.
How AI is driving smartphone upgrades
Back to the AI focus. Assurant’s Connected Consumer Trend report reveals that by mid-year 2025, about 30% of Americans are expected to own an AI enabled device. About 11% of U.S. consumers have already upgraded their devices recently, versus 16% that are planning to upgrade within the next six months.
By essentially combining the data from these two reports, we can start to see just how influential modern AI is on the upgrade cycles of smartphones. As new technology rolls out, boosting the capabilities of the average device, people are willing to upgrade. Now, it’s difficult to say if that’s the case for other formative types of technology. But you could also argue that almost nothing is on the same level as AI right now and it’s rapid adoption.
Looking at the data alone, it’s clear, people want AI capabilities in their new devices. How do you feel about it?
