Huawei will be launching its new flagship phone next month which uses artificial intelligence (AI) powered features such as instant image recognition, to be the front runner of the mobile industry.

According to Reuters, chief executive of Huawei's consumer business, Richard Yu on Saturday revealed, the company is betting on a powerful new mobile phone chip for its upcoming Mate 10 and other high end phones to provide consumers with faster processing speed and lower power consumption.

Yu, however refused to pop the bubble about the new features, but tech blogs predict the phones to be large with a 6-inch-plus full screen display.

AI built into its new chip can make phones more personalised, or anticipate the actions and interests of their users, Yu said.

As examples, he said AI can enable real-time language translation, heed voice commands, or take advantage of augmented reality, which overlays text, sounds, graphics and video on real-world images phone users see in front of them.

Yu is optimistic that the new Kirin 970 chip’s speed and low power will give their phone an edge over the Apple iPhone 8 series which is predicted to be revealed in September 12 and Samsung’s range of phones in line for release this year.

Huawei is the world's No. 3 smartphone maker behind Samsung and Apple.

The company assures its newly announced Kirin 970 chip can preserve battery life on phones by up to 50 percent.

Huawei boasts the new chip as the first Neural Processing Unit (NPU) for smartphones that unites classic computing, graphics, image and digital signal processing power that have typically required separate chips, taking up more space and slowing interaction between features within phones.

Significantly, Huawei plans to use the Kirin chips to create a product that is the future and a product that is different from its competitors.

The Mate 10 and the Mate 10 Pro will be launched in Munich this October 16.