Samsung Electronics Co (OTCPK: SSNLF) kicked off its smartphone and artificial intelligence (AI) integration by unveiling a new phone line with Alphabet Inc's (NASDAQ:GOOG) (NASDAQ:GOOGL) Gemini.

What Happened: Samsung debuted Gemini-integration on its Galaxy Z Fold and Z Flip 6 at its Unpacked 2024 event on Wednesday.

Both phones are both thinner and lighter than previous models, but its headlining feature is its foray into AI.

"The latest Google Gemini app is fully integrated on the new Galaxy Z series, providing your own AI-powered assistant right on your phone. By simply swiping the corner of the screen or saying 'Hey Google', you can bring up Gemini's overlay and get help with writing, learning, or planning," the Samsung press release said.

Google has steadily added Gemini AI features in recent months, including greater integration with AI-powered photo and video searches. Samsung highlighted the integration of Gemini's "Circle to Search" feature.

In addition, Samsung's presentation leaned into its own Galaxy AI features, particularly on the system's notes app and with language translation.

The Fold will cost $1,900 and the Flip will cost $1,100, both $100 price hikes according to TechCrunch.

Why it Matters: The announcement comes amid pushes by competitors, such as Apple Inc, to integrate AI into operating systems. The Cupertino-based company announced a partnership with OpenAI's ChatGPT to bring AI-integration to Apple phones. Many experts believe that AI features on the iPhone 16 will supercharge demand.

The release of AI-powered phones throughout 2024 and 2025 could serve as a litmus test for whether the AI hype has legs. While preliminary evidence shows that customers are not keen on paying for AI, Samsung's price hikes reflect a possible reversal of consumer behavior if the products prove popular.

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