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CASE STUDIES

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2024

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Microsoft

Future vision for Micrsoft's AI-native mobile devices

Define a future vision for how Microsoft can become a leader in the mobile device space by developing the first AI-native handset

Define a future vision for how Microsoft can become a leader in the mobile device space by developing the first AI-native handset

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CLIENT

Microsoft

Visit site

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TIMELINE

4 months

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SERVICES

GenAI
Strategy
CX
Prototyping
Futures
Product Roadmap
Research
Service Design

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OVERVIEW

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OVERVIEW

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OVERVIEW

How Might Microsoft Takes its AI Advantage and Apply to Mobile Phones?


Thanks to their partnership with OpenAI, Microsoft was an early winner of integrating GenAI across their entire personal and professional software ecosystems. They see a future where Copilot is integrated into everything we do and where the mobile phone is the critical touchpoint for delivering value. This project sought to define a vision for where and how Microsoft should apply AI in a revolutionary new mobile experience.

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CHALLENGES

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CHALLENGES

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CHALLENGES

Microsoft Previously Exited a Highly-Competitive Mobile Market


Android and iOS have dominated the mobile phone ecosystem for a decade and to achieve now would require Microsoft to pinpoint value drivers that transform how we use our mobile devices.


As powerful as AI is, this project must uncover the perceptions, attitudes, and value drivers of GenAI in the context of personal and professional mobile phone use.

Which type of user would be most likely to integrate an AI-native phone into every part of their life so that they would gain the most value from it?

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SOLUTIONS

The Value of AI is a Paradox: The More Access We Grant it, the More Valuable it Becomes to Users


In collaboration with the Microsoft team we defined 12 concepts of potential AI-native features and tested these with target users.


The strategic vision provided Microsoft with:

  • Foundational insights about perceptions about AI, barriers to entry, value drivers

  • Competitive insights about mobile phone usage, competitive wedges, and how to break down moats

  • Created and ranked 12 concepts of AI-native features

  • Developed roadmaps based on Microsoft's plans and priorities

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RESULTS

Perception of Safety Defines Success: The More Access We Grant it, the More Valuable it is to Users


Microsoft gained a vision that detailed which archetypes would adopt and pay for which features. It outlined barriers to gaining broad adoption and details about how to prioritize features for their short-term roadmap.


The project led to Microsoft's continued investments into AI as a competitive advantage. It shifted their strategic priorities and enabled them to focus on the capabilities that best meet the unmet needs of their target user profiles.

Safety concerns undermine use of AI features

Key finding

3

New retainer

2x

Website engagement

It has been such a pleasure working with PH1 on this project. During such a busy time for our team, it has been so incredibly helpful to partner with you on this. You brought so much value to the team and we enjoyed being on this adventure with you.

Proximity Lab

Digital strategy firm for Adobe, Carvana, Unilever, Microsoft and Oracle