Today marks the unveiling of Apple's newest creation.
During the annual Worldwide Developers Conference starting soon, Apple is predicted to announce a collaboration with OpenAI, the company responsible for ChatGPT. They are also expected to reveal the initial range of generative AI tools intended for their mobile operating system.
Integrating AI into Apple's products and services could lead to an increase in iPhone sales and post-purchase services, as people are currently taking longer to upgrade their devices due to economic concerns. The company is also facing scrutiny from regulators in Washington and was recently surpassed by chip maker Nvidia as the second-biggest US public company.
Tim Cook, CEO of Apple, mentioned the significance of generative AI and stated that they will announce news in the coming weeks on their most recent earnings call in early May.
Given the current pace at which the world is adopting generative AI, it seems that Apple's need for a smartphone with cutting-edge technology may be accelerating.
As Apple tends not to rush into new technology, they typically conduct research, develop, and fine-tune it for several years before integrating it into their products.
Analyst Dan Ives believes that Apple's full commitment to AI will open a new chapter for the company, significantly impacting their existing products and services.
Here's a detailed examination of what we can anticipate from Apple's event:
AI, AI, and More AI
Apple's AI strategy is predicted to be dubbed "Apple Intelligence" and will reportedly be an opt-in feature. It will require an iPhone 15 Pro or a device featuring the M1 chip or later, according to a Bloomberg report.
The most apparent way for Apple to adopt generative AI is by integrating ChatGPT-4o into Siri, their virtual assistant that has had mixed results. This integration could turn Siri into an iPhone chatbot, allowing it to handle specific requests such as finding an old picture or providing extensive answers to questions about the weather, news, and trivia. Over time, it might even learn an individual's preferences and their personality, responding accordingly.
Competing companies have already introduced generative tools, so it's likely that AI-powered features for the iPhone could assist users with tasks like summarizing and drafting emails, or presenting information on the screen with a simple gesture. It will also likely adapt naturally and seamlessly, responding based on voice, audio, natural language, images, and contextual clues.
"Generative AI will allow the next generations of iPhones to become an extension of ourselves, enhancing our ability to scan and interact with the world around us," said Thomas Husson, an analyst from Forrester.
It's possible that Apple's entire ecosystem will be influenced by AI, with it being embedded within Apple's own apps, such as Apple Maps, iMovie, and iPhoto. Some expect Apple to also provide tools for brand developers and app makers to create new experiences.
Senior analyst Reece Hayden anticipates that the demos during the event will demonstrate how AI adds value, while also outlining Apple's long-term vision.
A Strategic Partnership
A few months ago, Apple was reportedly exploring partnerships with both OpenAI and Google to power its AI tools. However, it now seems that they have reached a deal with OpenAI, as suggested by a Bloomberg report.
This partnership could be elaborated on during the keynote on Monday.
"Should OpenAI be responsible for Apple's AI capabilities, a formal partnership announcement is likely as consumers and businesses want to understand the regulations and rules surrounding data usage," Hayden said.
Although this partnership will boost the company's innovation, it could also hamper Apple's control over product development and the rules guiding data collection and privacy.
OpenAI faces criticism over certain practices, with some employees recently demanding greater transparency on AI's risks and measures to protect those who voice concerns about the technology they're working on. The group pleaded for a culture that celebrates, not punishes, individuals who speak out.
A Centered Focus on Privacy and Security
Apple has been known for its dedication to consumer privacy and security, and this focus will likely carry over into the upcoming announcements.
As many have acknowledged the potential threats associated with AI — including manipulation, misinformation, and loss of control that could lead to human extinction — it's crucial for Apple to address the implications for consumers when utilizing this technology.
This week marks one year since Apple announced its Vision Pro mixed reality headset, later released for purchase in February. During a recent earnings call, their CEO, Tim Cook, revealed that over 50% of Fortune 100 companies have acquired one. He also talked about the possibilities of this device, stating that they're devising ways to utilize it for purposes that previously seemed impossible.
Generative AI may play a crucial role in elevating the personalization and immersion of the Vision Pro. It could also lead to introducing fresh applications for businesses, especially in the education and healthcare sectors. Tuong Nygugen, a director analyst at Gartner, shared that any organization considering headset purchases needs to consider AI applications across their entire line of products.
Identifying these potential uses is a top priority for companies, with a focus on enterprise usage and presenting the case for this device as the future of experience and devices.
Further upgrades could also enhance sales of the expensive Vision Pro, costing a minimum of $3,499. The demand for Apple's new headset, however, hasn't been significant.
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Apple might incorporate AI-powered features into their mobile operating system, leveraging the tech sector to boost iPhone sales and post-purchase services. Such enhancements could include ChatGPT-like functionality in Siri, email summarization, and contextual clues response.
The potential partnership between Apple and OpenAI could greatly impact Apple's business by enhancing their existing products and services through advanced AI technologies, as suggested by analyst Dan Ives.
