Apple brings ChatGPT and more AI to devices, shares fall
Apple recently revealed its long-anticipated AI strategy, introducing its new "Apple Intelligence" technology that will be integrated into various apps such as Siri and bringing ChatGPT from OpenAI to its devices.
During Apple's annual developer conference, which lasted nearly two hours, CEO Tim Cook and other executives showcased how Siri, the voice assistant, will now be capable of interacting with messages, emails, calendars, and even third-party apps. Additionally, Siri will have the ability to write emails and adjust its tone of voice based on the context.
Focus on User Safety and Privacy
Renowned for its emphasis on user safety, Apple emphasized its commitment to making privacy a top priority in its features, setting itself apart from competitors like Microsoft and Google. Despite this, Wall Street seemed unimpressed, leading to Apple's shares falling by almost 2%.
While Apple's stock performance has lagged behind other major tech companies this year, the company saw a 13% increase in its stock price leading up to the conference. However, analysts like Dipanjan Chatterjee from Forrester noted that the event did not offer significant advancements to propel Apple ahead of its competitors.
Apple's Different Approach
Unlike its competitors, Apple's focus is not solely on enterprise applications. Instead, the company aims to appeal to its vast user base of over 1 billion individuals, many of whom may not be tech-savvy, by introducing AI technology in a more consumer-friendly manner. Craig Federighi, an Apple executive, described Apple Intelligence as "AI for the rest of us."
Despite this, some analysts believe that Apple's reliance on iPhone sales may hinder the immediate impact of the new AI features. Paolo Pescatore, from PP Foresight, suggested that companies like Alphabet and Microsoft may have a competitive edge due to their early investments in AI and cloud technology.
Future AI Features and Offerings
Apple announced a range of AI features at its Worldwide Developers Conference, which will be incorporated into the latest operating system for its devices. These features are designed to enhance user experiences and were demonstrated during the event.
The revamped Siri will offer improved control and functionality, with integration with ChatGPT and a focus on user privacy. Tesla's Elon Musk expressed concerns over privacy implications, highlighting the importance of protecting user data.
Apple plans to roll out the ChatGPT integration later this year, with additional AI capabilities to follow. The company emphasized that user information will not be stored and released a paper detailing its commitment to safeguarding customer data.
Furthermore, Apple intends to leverage a mix of on-device processing and cloud computing to power its AI features, ensuring privacy and security. The company also shared its plans to collaborate with other AI firms and utilize in-house chips for data processing.
In addition to software updates, Apple introduced the Vision Pro mixed-reality headset in more countries and unveiled the VisionOS 2 software, featuring advanced machine learning capabilities and new gestures.
