AI agents are reshaping the global tech landscape. These intelligent assistants don’t just answer questions; they take action. Though there are dozens of definitions for an AI agent, the consensus is clear that an AI agent should execute tasks based on simple user prompts.
Imagine telling your smartphone to “find a place with a good vegan menu” and it not only books a table but pre-orders your meal. AI agents will fundamentally change how we interact with devices, replacing today’s graphic-based user interface (UI).
This is why the slogan “AI is the new UI” is gaining momentum. AI agents will become the primary layer between users and applications (or services), shaking up the operating system dominance of smartphone OEMs.
Rise of AI agents and shifting power struggle
In the future, multiple AI agents are expected to coexist on a single smartphone, serving as gateways to apps and services. Smartphone OEMs will push their own agents, but third-party developers will introduce alternatives, leading to a multi-agent ecosystem. Crucially, AI agents won’t operate in isolation; they will communicate and coordinate on tasks in the background.
Source: Counterpoint Research
Big tech companies like Meta, Tencent and ByteDance are poised to leverage AI agents to reinforce their ecosystems. Meta’s agent might only message contacts via WhatsApp, while Tencent’s could book a ride exclusively through Didi, a company it backs. These closed-loop ecosystems would lock users into their own systems and realize their ambition of controlling a “super app” that covers all aspects of people’s lives. This would also shift control away from smartphone brands.
OEMs at risk: From industry leaders to hardware assemblers
This shift threatens to upend the mobile ecosystem’s value chain. Today, OEMs hold significant sway over app distribution, especially in China, where Google Mobile Services (GMS) are absent. But in an AI-driven world, if OEMs fail to take the lead, they risk becoming mere hardware assemblers, with little control over software, services, or revenue streams.
This is why smartphone brands are racing into AI. Their own AI agents will act as intermediaries, directing user requests to partners they choose – not just to dominant internet platforms. This opens opportunities to collaborate with rising-star startups that want independence from big tech but need traffic to grow. For OEMs, AI agents could become a powerful monetization tool. When an OEM’s AI agent receives command, it could call on or recommend a start-up’s services which could be comparable to those of internet companies.
Next opportunity: AI agent marketplaces
A new frontier is emerging – AI agent distribution. Users won’t just download apps; they will choose AI agents tailored to their needs. Some may prefer an AI assistant designed for emotional support, while others might opt for one that excels in logic and reasoning. This shift allows OEMs to reinvent app stores as agent marketplaces, controlling how AI-driven services are deployed.
To seize this opportunity, OEMs must invest now in an open AI ecosystem. They should back independent AI startups and ensure seamless integration of third-party agents into their devices. By doing so, they can counteract closed ecosystems built by internet giants and regain leverage in the mobile industry.
The battle for AI agent dominance is just beginning, and the stakes couldn’t be higher. The brands that invest now will define the future of mobile computing. Those that hesitate will be left assembling devices for someone else’s ecosystem.
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