CNN
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Apple faces numerous challenges as it prepares to launch perhaps its most important event in years.
At its annual Worldwide Developers Conference, which starts on Monday, the company is widely expected to announce a partnership with ChatGPT-maker OpenAI and unveil its first set of generative AI tools that will be included in its product suite. Mobile Operating Systems.
A big push into AI could help drive iPhone sales and services growth in the coming years, because users currently: Slow device upgrade times and an uncertain economic environment have weighed heavily on consumers, particularly in China. The company also faces regulatory scrutiny in Washington and was overtaken this week by chipmaker Nvidia to become the second-largest publicly traded U.S. company.
“We see generative AI as a key opportunity across our products and believe we have a differentiating advantage there,” Apple CEO Tim Cook said during the company's most recent earnings call in early May. The company plans to announce the news in the “coming weeks.”
The timing is also noteworthy. Apple isn't always the first to adopt and integrate emerging technologies — the company typically aims to research, develop and perfect new technologies for years before incorporating them into new products — but the speed at which the world is adopting generative AI is perhaps accelerating the company's need to have a smartphone equipped with cutting-edge technology.
Wedbush analyst Dan Ives said the company's push into AI will “break new ground for Apple” and have a lasting impact on its products and services.
Let's take a closer look at what to expect from Apple's big event.
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Siri on older iPhone models
AI, AI and more AI
Apple is expected to dub the AI initiative “Apple Intelligence” and make it opt-in only, and a new report from Bloomberg says it will require an iPhone 15 Pro or a device with the M1 chip or later.
Perhaps the most obvious way Apple could employ generative AI (the much-talked-about artificial intelligence that can provide thoughtful, thorough answers to questions) is through its virtual assistant, Siri, which has had a mixed track record. Integration with OpenAI's latest ChatGPT-4o model could turn Siri's capabilities into an iPhone chatbot, catapulting it into the next few years.
This allows Siri to perform specific tasks, like recalling photos taken on your device years ago, or answering detailed questions about the weather, news, and trivia. Over time, it will even learn your preferences and personality and respond accordingly.
Given that competitors have already introduced generative tools, the iPhone's AI-powered features are likely to be useful for summarizing and drafting emails, or information It could appear on the device screen with finger gestures and automatically and seamlessly adapt to the user based on voice, audio, natural language, images and contextual hints.
“Generative AI will give the next-generation iPhone a sixth sense, allowing it to scan and interact with the world around it,” Thomas Hasson, an analyst at market research firm Forrester, told CNN.
It could also bring about changes to Apple's entire ecosystem by incorporating AI into its own apps, such as Apple Maps, iMovie and iPhoto. Apple is expected to release tools for brand developers and app makers to create new experiences.
Reece Hayden A senior analyst at ABI Research said he expected demos during the event to underscore the point. This is where on-device AI adds value, and I also think Apple will take its time to develop its long-term vision.
“As AI becomes increasingly fundamental to Apple's overall strategy, there will be an emphasis on future R&D efforts and the expected investments and acquisitions the company makes to support its proposition,” he said.
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Apple plans to partner with OpenAI, the developer of ChatGPT
In the spring, it was reported that Apple was in discussions with both OpenAI and Google about the opportunity to partner with them to bolster its AI tools. But now, the company is thought to have struck a deal with the developers of ChatGPT, which has led to Apple More details will be provided during the opening keynote on Monday.
“If OpenAI is going to be driving Apple's AI capabilities, we expect to see a formal partnership announcement, because consumers and businesses want to understand the regulations, the rules, what they're signing up for, and how their data is being used,” Hayden said.
Hayden said the partnership could give the company a much-needed innovation boost, but it could also hinder Apple's control over product development and rules and regulations around data collection and privacy.
Partnering with companies and technologies that haven't yet earned the public's trust could pose risks for Apple in the future. OpenAI continues to face criticism for some of its practices. This week, a group of current and former OpenAI employees called on the artificial intelligence company to be more transparent about the “serious risks” of its AI and to protect employees who raise concerns about the technology the company is building.
The group called on AI companies to foster a “culture of open criticism” and welcome, rather than punish, people who raise concerns, especially in the face of increasing regulation. We are struggling to keep up with rapidly evolving technology.
Focus on privacy and security
Apple has long been focused on consumer privacy and security. This is likely to be reflected in Monday's announcement.
Companies are aware of the serious risks posed by AI. From manipulation and the spread of misinformation to the possibility of losing control and leading to the extinction of humanity, many academics and AI researchers have warned. He said there was a need to better educate the public about the risks and protective measures.
Apple will need to address how using this kind of technology affects consumers.
Apple is likely to offer an update to its Vision Pro mixed reality headset, which was announced a year ago this week. It was released in February.
During the company's recent earnings call, CEO Tim Cook said that more than half of the Fortune 100 companies have already bought Apple Vision Pro.[We] “We're looking at innovative ways to do things that weren't possible before,” he added.
Generative AI could take headset personalization and immersion to a new level, opening up new use cases for businesses, particularly in education and healthcare.
Tuong Nyggen, a director analyst at market research firm Gartner, said companies interested in headsets “are looking for ways to make money.” [AI]” has been introduced across all product lines.
“Nobody really knows what the winners are yet, so they're now focusing on enterprise, bringing all these use cases together and making the case for why this is the future of experiences and devices,” he said.
The upgrade could also boost sales of the pricier Vision Pro, which starts at $3,499. Demand is reported to be weakening.
