According to a recent report by Android Police, a Twitter user shared a screenshot of the Google Contacts app showing the new chips in the app. The chips appear below the search bar in the Contacts app. The first two chips – Phone and Email contacts – will let users filter the contacts based on how they have been in touch with the contact. This could prove useful when you are searching a person’s email address whom you have emailed before.
There is also an option to filter the contacts on the basis of the company. So, if you are searching for the contact number of someone work-related whose name you cannot remember, you can simply filter the contact based on the company.
There could be other chips also, but the three mentioned above can only be seen in the screenshot. Further, this feature seems to be in A/B testing for now, as could not notice these chips in the latest version of the Contacts app. Or this could be a server-side rollout, so it may take some time before the chips become visible to everyone.