Oppo intensifies its focus on AI, regularly communicating with Google and Microsoft.

• Oppo is in discussions with Google and Microsoft's top management on a weekly basis regarding the development of the next artificial intelligence application.
• Billy Zhang, president of Oppo's overseas market, sales and services, stated that Google will also visit China to inquire about our needs and pain points with their products. Let's collaborate to address them together, he added.
• Zhang stated that the smartphone company intends to incorporate AI into its factories, which are becoming increasingly automated.

Oppo is intensifying its focus on artificial intelligence by holding weekly discussions with Google's senior management about AI in preparation for the launch of its flagship phone abroad.

Companies from to are racing to harness the power of generative AI, which can produce human-like responses when prompted.

Billy Zhang, president of Oppo's overseas market, sales and services, stated that Google will visit China to inquire about the needs and pain points of their products. He made this announcement to reporters last week at Oppo's office in Shenzhen. This information was translated from Mandarin by CNBC.

Zhang stated that the company understands consumers' requirements and will employ AI to fulfill them. Although the company is expanding in Europe, it currently has no immediate plans for the U.S.

Oppo, which also owns the OnePlus brand, generates approximately 60% of its revenue from Southeast Asia, Europe, and other international markets. The company ranked fourth globally in smartphone shipments in the third quarter, accounting for 9% of all units shipped, according to Canalys. Samsung and Apple were tied for the top spot, followed by Huawei.

Despite U.S. restrictions on exports of high-end chips to China, experts predict that Chinese companies will have an advantage in the consumer applications of AI technology.

Oppo's upcoming flagship smartphone will feature AI writing and recording summary tools from Google's Gemini, as well as content generation features from Microsoft, which utilizes OpenAI products such as ChatGPT.

The extent to which existing Oppo models utilize AI tools from the two tech companies is not immediately clear. Oppo has not yet disclosed when its flagship phone will be released worldwide.

AI smartphones set for growth

Oppo announced in June that it plans to integrate generative AI into 50 million devices this year. The company's existing AI tools enable photo editing, such as removing window reflections. Additionally, Oppo has a ChatGPT-like bot.

Since 2020, Oppo has been developing its own AI models and opened an AI center in February, in addition to partnerships.

"Zhang stated that AI is the future's most crucial technology area, and we have invested with great determination in it."

According to a whitepaper published Wednesday, Counterpoint Research predicts that the number of generative AI smartphones will increase from 46 million last year to 732 million in 2028. However, the report did not provide details on the complexity of these features.

Apple is set to release its first software update with AI tools next week, which will include features such as removing unwanted elements in photos and integration with ChatGPT.

On Wednesday, Honor unveiled its latest operating system that utilizes AI to replicate touchscreen actions, including launching an app to place a coffee delivery order.

Tech for production efficiency

Oppo plans to integrate AI into its factories, which are increasingly automated, to improve quality and stability, lower production costs, and increase unit yield, said Zhang.

In Dongguan, near Shenzhen, Oppo has replaced approximately 8% of its workers with machines at a production line for an entry-level smartphone, and shifted those employees to focus on more intricate, high-end phones.

Honeywell has announced a partnership with Google's Gemini to develop AI-powered assistants for factory workers and systems.

Oppo is introducing its digital management system in factories across seven countries, including India and Indonesia. The company also manufactures phones in Turkey, Pakistan, Bangladesh, Brazil, and Egypt.

Our digitalized and standardized manufacturing process makes it easier to grow and expand globally, according to Danny Du, director of manufacturing management at Oppo, as he shared with CNBC.

Oppo has reduced its manufacturing costs by 40% in three years, according to Du. The integration of technology with factory machines and systems has shortened production time from 16 days to six. This enables Oppo to respond promptly to market orders, rather than relying on long-term forecasts that carry the risk of unsold inventory.

— CNBC's Kif Leswing and Eric Rosenbaum contributed to this report.