This news comes to us country of Bloomberg, which says that Google is overhauling the Android user interface and is modifying APIs to allow apps to more easily conform to this new physical design. "The design will mean more new Android phones with cutouts at the top of their screens to fit cameras and other sensors," writes Mark Gurman, who has been at the forefront of previous leaks from the Apple and Google camps. "That will likely support new features, helping Android device makers keep up with similar Apple technology."
While Google will lay the groundwork for future Android smartphones with notched displays, it is not expected that all manufacturers will adopt this design trend. Apple's move was no doubt controversial -- even among diehard Apple fans -- and we haven't yet seen major Android makes adopt similar designs. Right now, only the Essential Phone really stands out from the crowd with its tiny display notch for the front-facing camera, although that phone has failed to make a major impression on Android users.
For manufacturers that do embrace the notch, expect to see similar technology to Apple's Face ID in the coming year(s) from the Android camp. We may even see such technology from Samsung later this month with the notch-less Galaxy S9 series.
In addition to software support for notched displays, Android P is also expected to further improve battery performance, include tighter integration with the Google Assistant and add support for smartphones with folding/multiple displays.