Apple has introduced a highly anticipated AI strategy, incorporating its new "Apple Intelligence" technology into a wide range of apps, including Siri, and integrating OpenAI's ChatGPT into its devices. During Apple's annual developer conference, CEO Tim Cook and other executives highlighted Siri's enhanced capabilities, such as interacting with messages, emails, calendars, and third-party apps. Siri can now also write emails and adjust its tone to fit different contexts.
Emphasizing its commitment to user safety, Apple underscored its plan to stand out from competitors Microsoft and Google by making privacy a central feature. Despite these efforts, Wall Street's reaction was lukewarm, with Apple shares dropping nearly 2% after the event. Investors had hoped for more groundbreaking AI features to bolster Apple's position against AI leader Microsoft.
Apple's stock had seen a 13% increase last month in anticipation of the conference, but the presentation did not deliver the expected breakthrough. Dipanjan Chatterjee, an analyst at Forrester, remarked, "There isn't anything here that propels the brand ahead of its as-expected trajectory of incrementalism." He added that while "Apple Intelligence" would offer small but meaningful enhancements, it only brings Apple on par with its peers.
Unlike its competitors, who focus on enterprise applications, Apple aims to persuade its over 1 billion users—many of whom are not tech enthusiasts—of the benefits of this emerging technology. Apple executive Craig Federighi described Apple Intelligence as "AI for the rest of us."
Despite these advancements, Apple remains heavily dependent on iPhone sales, and analysts are skeptical about the immediate impact of the new AI features. Paolo Pescatore, analyst and founder of PP Foresight, commented, "In this early race, it feels that Alphabet, and even more so Microsoft, are in better shape following their initial moves and with thanks to their cloud assets."
The new AI features, showcased at the Worldwide Developers Conference, will be included in the latest operating system for Apple's devices. The event, held annually at Apple's Cupertino, California, headquarters, serves as a platform to present updates to Apple's apps and operating systems and introduce developers to new tools for their applications.
As Apple continues to innovate, the company hopes that its focus on privacy and user-friendly AI will resonate with its vast user base, helping it maintain its competitive edge in the rapidly evolving tech landscape.