It may be Apple's next major innovation.
Apple's Worldwide Developers Conference is set to begin on Monday, where the tech giant is expected to unveil a partnership with OpenAI and launch its first round of generative AI tools for their mobile operating system.
This move into AI has the potential to boost sales of iPhones and its various services, as users are largely delaying device upgrades and the economic climate remains uncertain, particularly in China. Furthermore, the company is facing regulatory pressure in Washington and has just been overtaken by chip maker Nvidia to become the second-largest US-listed firm.
On their most recent earnings call in May, Apple CEO Tim Cook mentioned that they view AI as "a key opportunity across our products" and that they plan to announce news in the near future.
Apple's timing in adopting AI might seem rushed given their usual proclivity for researching and perfecting new technologies before incorporating them into products. However, the swift global adoption of generative AI could be compelling Apple to release a smartphone equipped with the most advanced technology available.
According to Wedbush analyst Dan Ives, embracing AI will usher in a new era for Apple, profoundly impacting both their product and service offerings. Here are some key points to expect from Apple's big event:
Embracing AI
Apple's AI initiative is rumored to be called "Apple Intelligence" and will be optional. It's said to require an iPhone 15 Pro or a device with an M1 chip or newer, according to Bloomberg.
Through a partnership with OpenAI, Siri, Apple's virtual assistant with a mixed reputation, could be significantly improved and even turned into an iPhone chatbot, enabling it to perform complex tasks like recalling pictures taken in the past, answering detailed questions about the weather, news, or trivia, and adapting to users' voice, audio, natural language, images, and contextual cues.
It's also likely that Apple's AI capabilities will seamlessly assist users with email summarization and drafting, as well as bringing relevant information to their device's screen using a gesture.
"Generative AI will allow the next generations of iPhones to become a sixth sense, empowering us to scan and interact with the world around us," said Thomas Husson, an analyst with market research firm Forrester.
It's possible that AI will also be embedded within Apple's own apps, like Apple Maps, iMovie, and iPhoto. Additionally, some analysts anticipate Apple releasing tools for app developers and brands to create new AI-enhanced experiences for their users.
Reece Hayden, a senior analyst at ABI Research, predicts that Apple will demonstrate how on-device AI adds value as part of their demos. Hayden also believes the company will unveil their long-term AI-related R&D efforts, investments, and acquisitions.
"AI will be foundational to Apple’s entire strategic focus, so they will emphasize the R&D efforts moving forward, anticipated investment, and acquisitions that the company has made to support their proposition," Hayden said.
A strategic partnership
In the spring, Apple was contemplating partnership possibilities with both OpenAI and Google to provide AI capabilities for its tools. Nonetheless, it appears to have sealed a deal with the ChatGPT creator.
While this collaboration will provide a significant innovation boost for Apple, it might also limit their control over product development and regulations regarding data collection and privacy.
Partnering with a company and a technology that have yet to earn public trust carries certain risks for Apple in the future. Furthermore, OpenAI continues to face criticism related to their practices. This week, a group of current and former OpenAI employees petitioned artificial intelligence companies to be more transparent about AI's risks and protecting employees who voice concerns about the technology they develop.
The group argued that AI companies should promote a "culture of open criticism" that supports rather than punishes those who voice concerns about the technology.
Privacy and security
Apple has long been concerned with consumer privacy and security, and they'll likely address these concerns during Monday's announcements.
With the risks posed by AI, such as manipulation, misinformation, and the potential for a loss of control that could lead to human extinction, the public needs to be better educated about AI's potential implications and protective measures. Apple needs to explain how leveraging this technology will affect their customers.
Image: An illustration of Apple's logo on a device screen.
One year ago this week, Apple introduced its Vision Pro mixed reality headset and made it available for purchase in February.
During their recent earnings call, CEO Tim Cook mentioned that more than half of the Fortune 100 companies have already purchased the Vision Pro. "We're exploring innovative ways to use it to do things that weren't possible before," he commented.
The inclusion of generative AI could elevate the headset's personalization and immersion capabilities, opening up new opportunities for various sectors, particularly in education and healthcare.
Tuong Nygugen, a director analyst at market research firm Gartner, emphasized that any business exploring headsets must consider AI across their entire product spectrum.
"Everyone is bundling use cases together currently, with a focus on enterprise, and attempting to justify this as the future of experiences and devices," he stated.
Updates could also increase interest in the costly Vision Pro, with a starting price of $3,499, which has allegedly experienced lackluster sales.
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Apple's AI partnership with OpenAI could potentially revolutionize the tech business, as generative AI tools may significantly enhance Siri and other Apple services, leading to increased user engagement and potential device sales.
Given the strategic importance of AI to Apple's future, the company is likely to invest heavily in R&D and acquisitions to ensure they remain at the forefront of technological advancements in the business sector.
