What does a phone with AI mean?

What does it really mean when we say a phone has AI capabilities? Is it just a buzzword to sell more phones, or does it actually enhance the user experience in meaningful ways? Do AI-powered phones have features that are fundamentally different from those without AI? For instance, can they predict our needs before we even know we have them? And how does the AI on a phone ensure our privacy and security are protected while still offering these advanced functionalities? These are the questions I have when I hear about AI-equipped phones, and I'm eager to learn more about what they truly offer.