During the iPhone 16 unveiling, Apple point-blank omitted mentioning these particular terms.
Regardless of whether you're an avid Apple fan who's already reserved the $1,200 iPhone 16 Pro Max or a person stuck in years-long conversations restricted to only blue-bubble groups, it's highly likely that soon, AI features will be integrated directly into your device, including your smartphone.
Despite the fact that the practical applications for most AI products currently lack both significance and reliability, Apple is betting that these budding AI tools will inspire users to upgrade their devices, leading to a surge in sales over the next year. However, given the previously highlighted AI tools presented by Apple in June and officially launched this week, one might want to manage their expectations. Even Apple seems to have some reservations, as they never explicitly mentioned the phrase "artificial intelligence."
The new features on offer are lacking the “must-have” showstopper quality that would compel someone to shell out a grand on a new device. You can anticipate a smarter, more human-sounding Siri with the iPhone 16, the ability to generate custom emojis based on your text input, and camera identification of park dogs to approximate their breeds.
However, these AI features are currently categorized as "nice to have" upgrades, and not the game-changing reason a consumer would decide to invest in a new device.
Despite uncertainty regarding feature availability and global rollouts, Gene Munster, managing partner at Deepwater Asset Management, maintains that consumers will be excited about these AI features. Munster believes that iPhone sales will exceed Wall Street's estimates in the upcoming quarters.
Although a relatively underwhelming iPhone 16 should still capture decent sales due to customers upgrading their old phones, this still represents positive news for Apple. Its exceptional brand loyalty is partly responsible for Apple's strategy to gradually and transparently integrate AI into its products (learning from the 2014 U2 album debacle).
For this event centered around presenting Apple's first AI-powered iPhone, there was one noticeable absence throughout the two-hour presentation: the words "artificial intelligence." Instead, Tim Cook and other company representatives only referenced their "intelligent" features.
To clarify, "Apple Intelligence" is Apple's proprietary AI. Company execs at Apple - the most brand-conscious organization globally - are conscious of something often missed in the tech-obsessed world of Silicon Valley: The general public distrusts AI.
Although developers and investors are betting on a future powered by AI, the everyday users whom these AI-powered gadgets aim to entice require more convincing. Despite the increasing frustration among Wall Street enthusiasts with AI's lack of return on investment, a study published in the Journal of Hospitality Marketing & Management discovered that describing a product as "AI-powered" tended to decrease a customer's intention to buy it.
The reasons for this are apparent: our interactions with bot-generated chatbots and images have rapidly made us skeptical of their mechanical and often incorrect outputs. The moment something appears inauthentic, we label it as bot-generated. When politicians' speeches stumble, we mock that it sounds like it was written by ChatGPT.
Apple, ever mindful of its image, avoids the "AI" tag, even though their whole pitch for the new iPhone emphasizes AI.
The integration of AI features into devices, including smartphones, could incentivize users to upgrade their devices, boosting sales for companies like Apple. However, while the iPhone 16 offers improved AI capabilities, such as a smarter Siri and custom emojis, these features are not yet compelling enough for consumers to make a significant investment in a new device.
