Apple will aim to persuade naysayers about its AI plan on Monday, after competitors jumped ahead in the use of AI.
According to observers, AI, and maybe a cooperation with ChatGPT creator OpenAI, will be a driving theme at the start of Apple’s WWDC developers’ conference in Silicon Valley.
The conference is Apple’s annual gathering of developers who create apps for iPads, Macs, and iPhones, and CEO Tim Cook will push hard to persuade his audience that the business is a significant AI player.
While Apple has secretly incorporated AI elements into its hardware for years, the company has yet to formalize its overarching strategy or embrace ChatGPT-style generative AI, which grabbed the world by storm in late 2022.
Rivals Meanwhile, Microsoft and Google have released products in rapid succession, propelling Microsoft and Nvidia, an AI chipmaker, above Apple as the world’s largest firms by stock price.
Apple’s stock has been on a roller coaster ride since the start of the AI mania, but supporters see Monday’s announcements as the beginning of a new chapter for the iPhone manufacturer.
While its “silence has been deafening, that will all change on June 10, when Apple crosses the AI Rubicon,” said Dipanjan Chatterjee, an analyst at Forrester Research.
The announcements will almost definitely revolve around an update to Apple’s iPhone operating system, iOS 18, in which AI is expected to play a significant role.
Silicon Valley believes that generative AI will fundamentally alter how consumers interact with smartphones and computers, but the technology is still in its early phases, and the benefits are unclear at this time.
A “flagship” OpenAI relationship is also widely anticipated, which may include an exclusive chatbot for iPhone owners and a boost to the much-derided Siri.
According to Wedbush Securities senior analyst Daniel Ives, all of these announcements will pave the way for the projected release of the iPhone 16 later this year and usher in “a renaissance of growth” for the firm.
Because Apple earns the majority of its revenue from iPhone sales, the AI will most likely focus on making its gadgets and services operate more seamlessly together, according to Creative Strategies analyst Carolina Milanesi.
“At the end of the day for Apple, it is about getting people to upgrade their iPhone,” Milanesi stated. “We will see if Apple gives them a compelling reason to do that.”
‘Litmus test’
According to Emarketer senior analyst Gadjo Sevilla, the WWDC announcements will serve as a “litmus test” for Apple’s capacity to integrate ChatGPT-like generative AI throughout all of its devices and services.
“Any misstep by Apple at this juncture could see it lose its place as a technology leader, especially as it is now sandwiched between two AI giants with actual products and release roadmaps that go well into the next two years.”
CEO Cook hinted at his commitment to AI by including more powerful and AI-ready CPUs in the iPad and MacBook releases earlier this year.
According to observers, Apple’s biggest difficulty is how to incorporate the technology into its products without jeopardizing its carefully marketed customer privacy and security.
ChatGPT-style AI thrives on data, and Apple will work hard to compete in the AI race while remaining true to its longstanding attitude on data privacy.
“Being too controlling of an AI ecosystem could cause Apple to lose ground or fall behind while other companies are moving fast and breaking things,” Sevilla stated.
