The smartphone industry is entering a new phase as technology companies compete to develop artificial intelligence-powered devices capable of carrying out tasks on behalf of users, from ordering meals and shopping online to composing messages through simple voice commands.

These next-generation devices, often referred to as AI agent smartphones, rely on software agents designed to independently complete tasks across multiple digital platforms. If widely adopted, experts believe they could represent one of the biggest shifts in mobile technology since the rise of app-based smartphones.

However, the emergence of AI agents also threatens to disrupt the dominance of major apps and platforms, many of which are reluctant to hand over direct access to their services to third-party AI systems.

Several companies showcased their latest AI-driven smartphone concepts at the World Artificial Intelligence Conference in Shanghai, offering a glimpse into what the future of mobile computing could look like.

Chinese smartphone manufacturer Nubia introduced its NaviX Ultra, a device powered by Doubao, the popular AI chatbot developed by ByteDance, the parent company of TikTok. Promoting the device online, Nubia described it as the beginning of "a new era of AI agent smartphones."

The launch followed the limited release of a prototype known as the "Doubao Phone" in December, which quickly sold out. The prototype was designed to respond to voice instructions and perform actions across different applications, including ordering food and comparing prices while shopping online.

However, the device soon faced challenges when major Chinese technology companies, including Alibaba, Tencent and JD.com, restricted the AI assistant’s access to their platforms. The restrictions limited the assistant’s ability to perform certain functions, forcing ByteDance to disable some advanced features, particularly those involving payments.

App Access and Security Challenges

The struggle to gain access to third-party applications remains one of the biggest obstacles facing AI agent smartphones.

Kiranjeet Kaur, associate research director at US market intelligence firm IDC, said companies are hesitant to allow external AI agents to control interactions with their users because they risk losing influence over their own platforms.

"Agenting is everyone's dream, but we haven't reached there yet," Kaur said, noting that current AI agent technology still delivers inconsistent results.

According to Chinese technology reports, Nubia’s NaviX Ultra is attempting a different approach by working with app providers rather than bypassing their restrictions. This strategy aims to avoid the problems experienced by the first Doubao Phone prototype, which was limited after several companies blocked unauthorized access.

Another Chinese manufacturer, Honor, also presented its AI-powered "Robot Phone," featuring an interactive camera mounted on a small robotic arm. The company said the device can respond to human gestures, follow movements, capture selfies and improve video stability.

Honor added that an AI agent powered by multiple models, including some developed with Alibaba, would be integrated into the device when it launches later this year.

AI Agents Could Reshape the Digital Economy

Shanghai-based artificial intelligence company StepFun also unveiled its "AI agent-native smartphone," the STEPX Neo, ahead of the conference.

The company’s chairperson, Yin Qi, said StepFun had formed partnerships with major Chinese platforms, including Alipay and ride-hailing service Didi. According to a report published by state news agency Xinhua, the device would be able to assist users with travel bookings, everyday purchases, local services, workplace tasks and video editing.

Beyond China, global technology companies are also investing heavily in AI-powered mobile experiences. Google has been developing smartphone features that can handle tasks such as making appointments, while US-based Brain Technologies introduced its "Natural AI Phone" in Japan in partnership with telecommunications company SoftBank.

During a demonstration, Brain Technologies’ device was able to send a message apologising for lateness after receiving only a voice command through the LINE messaging platform. However, the phone also struggled with some requests, highlighting the current limitations of AI agent technology.

Analysts believe the race to develop successful AI smartphones is still wide open.

Marc Einstein of Counterpoint Research said there is currently no clear leader in the market, making the technology one of the most closely watched areas in the industry.

He predicted that within the next five to 10 years, consumers may no longer interact with smartphones primarily through individual apps as they do today.

Instead, AI agents could become the main gateway through which people access digital services, potentially transforming the mobile industry and disrupting existing business models.