APPLE is reportedly planning to install an artificial intelligence chip in upcoming iPhones.

The tech giant is said to be working on a chip called the Apple Neural Engine which would be dedicated to carrying out artificial intelligence (AI) processing, news.com.au reports.

Although artificial intelligence is being used already to power digital assistants like Siri and Google Assistant, these technologies rely on computer servers to process data sent to them rather than the processing happening on the mobile device itself.

The technology will bring new types of capabilities to mobile devices and should reduce or even eliminate the need for an internet connection.

The uses are potentially limitless and will bring about a new phase in how we rely on applications and our mobile devices in everyday life.