Aditya Soni and Max A. Cherny
(Reuters) – Apple unveiled its long-awaited artificial intelligence strategy on Monday, integrating its new “Apple Intelligence” technology into its suite of apps, including Siri, and bringing the OpenAI ChatGPT chatbot to its devices.
In a nearly two-hour presentation at Apple’s annual developer conference, executives including CEO Tim Cook outlined how the Siri voice assistant will be able to interact with messages, email, calendar, and third-party apps. Siri will be able to write emails and change the tone of voice depending on the situation.
Long known for its focus on user security, the iPhone maker has also signaled it plans to differentiate itself from rivals Microsoft (NASDAQ:) and Google by putting privacy “at the core” of its features.
But Wall Street, eager for more impressive artificial intelligence features and guarantees that would give Apple the goodwill to compete in artificial intelligence with market leader Microsoft, was cool to the development. Apple (NASDAQ:) shares closed down almost 2%.
Apple shares, which have lagged other big technology stocks this year, rose 13% last month ahead of the event.
“There’s nothing here that would move the brand forward on the expected incremental growth trajectory,” said Dipanjan Chatterjee, an analyst at Forrester.
“Apple Intelligence will truly delight its users in small but meaningful ways. She puts Apple on par, but not head and shoulders above its peers.”
Apple’s approach contrasts with the corporate-centric focus of its competitors. The company hopes the moves will convince its more than 1 billion users, most of whom are not tech fans, of the need for the nascent technology.
Apple CEO Craig Federighi called Apple Intelligence “AI for all of us.”
Apple remains overly dependent on iPhone sales, and some analysts say any boost from new artificial intelligence features is unlikely to materialize in the short term.
“In this early race, it appears that Alphabet (NASDAQ:), and even more so Microsoft, are in better shape after their initial moves and thanks to their cloud assets,” said Paolo Pescatore, analyst and founder of PP Foresight.
The artificial intelligence features announced at Apple’s Worldwide Developers Conference will be included in the latest operating system for its devices, which were also showcased at the event.
Apple uses the event at its Cupertino, California headquarters every year to showcase updates to its own apps and operating systems, as well as show developers new tools they can use in their apps.
Siri UPDATE
The updated Siri will have more control, helping it do what has proven difficult in the past, as the assistant would need to understand the user’s exact intentions as well as how the app works.
Siri will also leverage ChatGPT’s expertise and ask users for permission before requesting OpenAI’s service as part of Apple’s collaboration with the Microsoft-backed startup, a privacy feature Apple has emphasized.
But the connection immediately raised privacy questions.
Tesla (NASDAQ:) CEO Elon Musk said at X that he would immediately ban Apple devices from his companies if the iPhone maker integrates the startup’s technology at the OS level.
ChatGPT integration will be available later this year, with other artificial intelligence features to follow, Apple said, adding that access to the chatbot will be free and user information will not be logged.
Later on Monday, Apple published a document detailing how its features, including those powered by OpenAI, will keep customer data safe. This includes running more complex tasks on Apple’s servers as part of a new offering called Private Cloud Compute.
Apple also said it plans to add technology from other artificial intelligence companies to its devices, amid reports that it is discussing a potential collaboration with longtime search partner Google.
To implement artificial intelligence functions, Apple plans to use a combination of on-device processing and cloud computing. This means that AI features will only be available on the latest iPhone models, starting with the iPhone 15 Pro, as well as future models.
The company, which has long opposed cloud processing of consumer data on privacy grounds, said its approach would provide greater privacy protections as it plans to use proprietary chips equipped with security features in data centers.
Analysts say using its own chips could also help Apple avoid the expense of expensive Nvidia (NASDAQ:) chips.
Apple said the new iOS 18, the software that powers its flagship device, will make the iPhone home screen more customizable.
It will come with an ‘app lock’ feature to help people protect sensitive information. Users can block certain applications and have greater control over data in the OS.
The company will also make its Vision Pro mixed reality headset available in eight additional countries, including China and Japan. New VisionOS 2 software for the headset will use machine learning to create photos with natural depth and will include new gestures.