Samsung has established itself as one of the leading companies when it comes to implementing artificial intelligence in its products. The Galaxy AI suite for Galaxy devices could be the biggest exponent for the mass consumer market. However, the company has integrated the technology into more product lines. A Samsung executive confirmed that its current plan is to use AI to boost its market growth.
AI is a key part of Samsung’s market growth strategy
Han Jong-hee, CEO of Samsung Electronics, answered some questions from Chery Kang of CNBC. During the interview, the official stated that Samsung plans to continue implementing artificial intelligence in its devices. The company had disappointing financial results in 2024 and is developing strategies to turn the situation around.
While we are most familiar with AI in Galaxy phones, Samsung has also implemented it in laptops, and even in smart home appliances. However, the features that have the most direct impact on the user are available on the company’s mobile devices. AI lets you get real-time translations while talking to other people, make complex edits to photos with just a few taps, and more. A recent leak revealed that the Galaxy S25 Ultra will have exclusive AI-driven camera features and quality enhancements as well.
Strong competition from China helped decide the strategy
Strong competition from Chinese brands partly drove Samsung’s bet on heavy AI implementation in mobile devices. Companies such as Xiaomi have been releasing premium devices with impressive specs that surpass the capabilities of Galaxy phones in multiple aspects for some time now. So, faced with the inability to compete on a price-performance ratio, Samsung found an AI way to differentiate itself by offering exclusive software features.
Han Jong-hee said that competition from Chinese companies is “helpful” for both Samsung and its users. This drives the brand to improve at a faster pace, which results in better products. We will have to wait and see if Samsung’s bet on AI will bring about the short-term market growth the company wants.
Samsung has a plan for its AI-focused hardware too
Samsung is also involved in the AI industry as a key hardware supplier. The company sells HBM—high-bandwidth memory—chips to big names like NVIDIA. However, its products are lagging behind the competition in this segment. SK Hynix’s HBM chip technology has taken the lead in the market.
Last October, the head of Samsung’s semiconductor division issued an apology to shareholders for the disappointing Q3 2024 financial results. In fact, for 2024, the company’s shares plummeted 32% year-on-year. Samsung’s CEO said that the firm already has a plan to increase shareholder returns. The South Korean giant will reveal the plan “step by step” when the time comes.
