Google unveils Pixel 8 built for 'the generative AI era'

There's nothing particularly new about Google's latest-generation Pixel 8 smartphone hardware. That's why the company is pushing hard to tout its AI-powered new software, which Google says was built specifically for the "first phone of the generative AI era."

At a press event in New York City, Google (GOOG) showed off the new Pixel 8 and Pixel 8 Pro devices, which largely look the same as the year prior, albeit with more rounded edges. But inside, its new G3 Tensor chip unlocks an AI-powered world aimed at simplifying your life, from asking the device to summarize news articles and websites to using Google (GOOG) Assistant to field phone calls and tweaking photos to move or resize objects.

The 6.3-inch Pixel 8 and the 6.7-inch Pixel 8 Pro comes with a brighter display, new camera system and longer-lasting battery life. The Pixel 8 is available in three colors - hazel, rose and obsidian - and starts at $699, about $100 less than the baseline iPhone 14 with the same amount of storage. (That's about $100 more than last year's Pixel 7).

Meanwhile, the Pixel 8 Pro - which touts a polished aluminum frame and a matte back glass this year - now has the ability to take better low-light photos and sharper selfies. It starts at $999 - the same price as the iPhone 15 Pro - and is available in three colors: bay, porcelain and obsidian.

Although these upgrades are mostly incremental, the AI enhancements and related features may appeal to tech enthusiasts who want the latest version of Android and an alternative to Apple or Samsung smartphones.

At the same time, Google's Pixel line remains a niche product. Its global market share for smartphones remains about 1%, according to data from ABI Research. Google also limits sales to only a handful of countries, so keeping the volume low has been strategic as Google remains predominantly a software company with many partners running Android.

Reece Hayden, an analyst at ABI Research, said Google is looking to establish itself as an early market leader amid the "generative AI-related hysteria," which kicked into high gear late last year with the introduction of ChatGPT. Generative AI refers to a type of artificial intelligence that can create new content, such as text and images, in response to user prompts.