Apple Intelligence: The Next Big Step
On Monday, June 10, 2024, Apple announced a groundbreaking partnership with OpenAI to integrate ChatGPT into its devices. Unveiled at the company’s annual Worldwide Developers Conference (WWDC), this collaboration marks what CEO Tim Cook calls the “next big step” for the tech giant.
During the event, Cook and his team introduced “Apple Intelligence,” a new system leveraging generative AI to enhance productivity and personalization across Apple’s ecosystem. The upgrade aims to create a smarter Siri voice assistant and more personalized features on Apple devices.
Integrating Generative AI
The WWDC was highly anticipated by investors, eager to see how Apple plans to leverage generative AI amidst fierce competition from other tech giants like Alphabet, Microsoft, Amazon, and Meta. Microsoft, notably, has invested billions in OpenAI, further intensifying the race to dominate AI technology.
Craig Federighi, Apple’s senior vice-president of software engineering, emphasized the seamless integration of ChatGPT with Apple devices. Users will not need a subscription to access this feature, ensuring they remain in control of when ChatGPT is used. Federighi noted that Siri will ask for permission before communicating with ChatGPT, adding that the integration will allow Siri to perform more complex actions on native apps and enable third-party developers to harness these advanced features.
Privacy and Local Processing
Apple’s approach to AI is centered on user privacy. Models will run locally on devices and on Apple’s cloud servers, powered by its proprietary chips. Cook highlighted this as “AI as only Apple can deliver it,” stressing that their method allows AI to be aware of personal data without actually collecting it. “It’s aware of your personal data without collecting your personal data,” reiterated Federighi.
New generative AI features are set to be rolled out with iOS 18, the latest iPhone operating system, and will also be available on iPads and Macs. These features include image generation and custom emojis, aiming to enhance the user experience significantly.
Market and Industry Reactions
Leo Gebbie, an analyst at CCS Insight, noted that the introduction of “Apple Intelligence” should reassure investors about Apple’s position in the AI race. “The partnership with ChatGPT is a major development which beefs up Apple’s AI offerings, and new features like a significantly improved Siri will be welcome to users.”
However, not everyone is thrilled. Elon Musk, CEO of Tesla and owner of X, voiced strong opposition, warning that he would ban Apple devices at his companies if Apple integrates with OpenAI at the operating system level. He labeled it an “unacceptable security violation.” Musk, a former co-founder of OpenAI, has had a contentious relationship with the company and its CEO, Sam Altman. His own AI start-up, xAI, represents his vested interest in the AI domain.
Despite the expected focus on AI at this year’s WWDC, market reactions were lukewarm, with Apple shares dipping 1.9% on the announcement day.
The Conference and Future Announcements
The conference, held at Apple Park, was a grand spectacle. Attendees were welcomed by enthusiastic Apple employees in pink T-shirts, directing them under the morning sun. The event featured an outdoor stage with seating for hundreds, created by opening the multistorey glass doors of the company’s vast cafeteria. The presentation began with a dynamic video showcasing Federighi and a team of Apple employees skydiving in Apple-branded jumpsuits, setting an energetic tone for the announcements.
Sam Altman, though present at the event, did not join Cook on stage. OpenAI continues to be a dominant force in generative AI, with ChatGPT propelling its valuation above $80 billion. On the same day, OpenAI announced the hiring of former Nextdoor CEO Sarah Friar as its new chief financial officer and Kevin Weil, previously with Facebook, Instagram, and Twitter, as chief product officer.
In addition to the AI advancements, Apple revealed plans to bring its Vision Pro headset, initially released in the US in February, to international markets. Pre-orders will soon be available in countries including China, Japan, Singapore, the UK, France, Germany, Canada, and Australia.
Conclusion
Apple’s partnership with OpenAI and the introduction of “Apple Intelligence” mark significant strides in the tech giant’s AI journey. As Apple continues to innovate, integrating advanced AI features while maintaining a strong focus on privacy, it sets a new standard in the tech industry. Investors and users alike will be watching closely as Apple navigates this exciting new frontier.
