Google launch the new Pixel and Pixel XL phones .

Google on Tuesday unveiled its new Pixel smartphone with artificial intelligence built in as it directly takes on the iPhone with its own branded handset.

"We are building hardware with the Google Assistant at its core," said Rick Osterloh, head of a new hardware division at the California-based internet giant. "We believe that the next big innovation is going to take place at the intersection of hardware and software, with AI at the center."