NEW DELHI: About 63 per cent of Gen Z consumers are now aware of artificial intelligence (AI)-infused smartphones powered by chipsets from MediaTek and Qualcomm, a new report showed on Thursday.

According to CyberMedia Research (CMR), consumers, particularly tech-savvy Gen Z and Gen Alpha, crave the on-device AI advancements.

"They recognise the value of AI-powered features that not only meet but exceed expectations. Chipset manufacturers delivering on this promise will establish unwavering brand loyalty. In a dynamic world, consumers are willing to invest in smartphones that can keep pace," Prabhu Ram, Head- Industry Intelligence Group (IIG), CMR.

The report surveyed more than 1,500 consumers, across demographics, and based across Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad.

According to the report, both chipmakers MediaTek and Qualcomm are locked in tight competition.

MediaTek has a slightly higher brand salience score of 69 (out of 100), followed by Qualcomm at 62.

Both brands have a substantial presence among Gen Alpha (MediaTek - 37 per cent, Qualcomm - 34 per cent) and Gen Z (MediaTek - 32 per cent, Qualcomm - 30 per cent).

In addition, the report found that a whopping 40 per cent of consumers are willing to pay a premium for MediaTek, compared to 36 per cent for Qualcomm, the long-time leader. This shift suggests a new era where chip brand recognition is translating into a key purchase driver, the analysts noted.

"On-device AI empowers smartphones to handle complex AI tasks directly, reducing reliance on cloud infrastructure. Future-proof smartphone chipsets are crucial to achieving this vision," said Sugandha Srivastava, Senior Manager - Industry Consulting Group, CMR.