StepFun Unveils StepX Neo as World's First Agentic Smartphone With Offline AI Assistant

China-based artificial intelligence (AI) company StepFun unveiled the StepX Neo as the world's first mass-market agentic smartphone on Monday. The firm, which was founded by former Microsoft executives in 2023, claims that its first consumer hardware product features an integrated AI agent that can complete complex, multi-step tasks across apps with minimal user intervention. The handset is powered by its in-house Step Edge foundation model and runs on the company's custom Step AOS operating system. StepFun claims StepX Neo supports live translation across 32 languages while also integrating with several popular third-party services.

Agentic AI Experience on StepX Neo

Among the highlights of StepFun StepX Neo is the proprietary AI assistant called Step Amoo (via Wall Street China). Instead of functioning as a standalone chatbot, the company claims it is integrated into the OS. It is said to be designed to execute workflows across apps, system functions, and web services using very few natural language commands.

Citing an example, the company said that users can ask the phone to plan an entire trip, and the AI agent can search for flights, recommend accommodation, complete bookings, organise travel details, and save the itinerary without requiring users to manually switch between apps. It is also claimed to be able to understand user preferences over time.

For frequent travellers, the StepX Neo features built-in AI capabilities, including the ability to translate live conversations. StepFun claims it can translate live conversations, phone calls, text messages, and text captured through the camera viewfinder across 32 supported languages and regional dialects.

Further, it can retrieve local transit schedules, recommend nearby attractions, access saved itineraries offline, remind users about flight check-ins, flag visa requirements, and even assist with customs documentation.

Powering all of this is Step AOS. It is a custom-built agentic operating system that does not simply layer AI on top of Android, but uses rebuilt significant portions of the software stack using Android, Linux, and RTOS components. The OS leverages what the company calls an “atomic capability engine”. It is claimed to be able to simplify device functions into communication, apps, files, and system tools using the MCP (Model Context Protocol) standard. StepFun says this enables the AI agent to combine multiple functions to complete a task autonomously.

The software stack also includes a Natural User Interface (NUI) that combines voice and visual inputs while learning user behaviour over time. The AI processing happens on-device, leveraging a proprietary foundation model that is said to be optimised specifically for smartphones. The company claims the model leads competing edge AI models across 29 benchmark tests. It has, however, yet to disclose which benchmarks were used to measure the performance.

StepFun has partnered with several major Chinese platforms like Ctrip, Alipay, Didi, Meituan, WPS Office, and CapCut, which would allow the AI agent to perform more functions beyond the phone itself.