Baidu Inc has partnered with Lenovo Group Ltd to integrate its generative AI technology, Ernie, into Lenovo's smartphones. This move is part of Baidu's strategy to find practical applications for its AI models and reflects the growing trend of incorporating generative AI into smartphones. The partnership aims to leverage the unique market opportunity in China, where U.S.-based AI services are unavailable. Baidu, along with Alibaba and Tencent, is capitalizing on this gap by offering over 200 AI models in China. The integration of AI in smartphones is seen as a crucial step for the future of the industry.