Boosting Apple's AI Capabilities to Stay Competitive

Apple is set to elevate its Siri voice assistant and operating systems by integrating OpenAI's ChatGPT, as it strives to catch up in the AI race.

At its annual developers' conference on Monday, Apple announced the Siri makeover along with several other new features. This development is part of a new personalized AI system called "Apple Intelligence," designed to offer users a more seamless navigation experience across Apple devices.

Updates to iPhone and Mac operating systems will include access to ChatGPT through a partnership with OpenAI. This integration aims to enhance tools like text and content generation, with a test version available in the autumn.

Tim Cook, Apple’s CEO, expressed enthusiasm about the move, stating it would bring Apple's products "to new heights." He made this announcement during the Worldwide Developers Conference at Apple's headquarters in Cupertino, California. However, the market reaction was lukewarm, with Apple’s share price dropping by 1.91% on the day of the announcement.

What is AI and How Does It Work?

The partnership with OpenAI faced criticism from Elon Musk, owner of Tesla and Twitter/X, who threatened to ban iPhones from his companies due to "data security" concerns. Musk claimed that Apple is unaware of how OpenAI handles the data. Apple has not responded to these allegations.

Meanwhile, Samsung mocked Apple's announcement, suggesting that adding the "Apple" name doesn't make the technology groundbreaking. This is not the first instance of rivalry between the two tech giants. However, the primary concern for Apple is whether its new AI tools will enable it to catch up with competitors who have been quicker to embrace AI technology.

Apple was surpassed by Microsoft as the world's most valuable company in January and again by chip-maker Nvidia in early June.

What is 'Apple Intelligence'?

Ben Wood, chief analyst at CCS Insight, noted that while the new personal AI system might reassure investors, the ChatGPT integration could also expose deeper issues within Apple. “Apple Intelligence” is not a standalone product or app but will be integrated into every app and Apple product. For instance, it can refine message drafts or optimize routes in your diary.

In this way, it resembles Microsoft's AI assistant Copilot, but without additional costs for activation. Siri, Apple's voice assistant acquired in 2010, has been revamped with a new interface and a more conversational approach to improve user navigation of devices and apps.

Apple emphasized the security of Apple Intelligence during Monday’s keynote, assuring that some processing will occur on the device, with larger tasks sent to the cloud without storing data there. This is crucial for customers who value Apple's privacy promises.

Craig Federighi, Apple’s senior vice president of software engineering, highlighted that the system "puts powerful generative models right at the core of your iPhone, iPad, and Mac," drawing on personal context to provide the most relevant intelligence while protecting privacy.

What Does the OpenAI and Apple Deal Mean?

Apple's decision to integrate OpenAI’s ChatGPT was anticipated but is unusual for a company that closely guards its products. Google and Microsoft have faced scrutiny for errors in their AI products recently, with Google retracting a new feature in May due to viral erroneous answers.

Apple's past resistance to allowing apps outside the App Store or any web browser other than Safari was only changed due to EU legislation. This integration may indicate that even Apple acknowledges it cannot currently compete with ChatGPT, highlighting OpenAI’s significant influence in AI.

Apple also announced that its mixed reality headset, the Vision Pro, will go on sale in the UK on July 12, having been available in the US since February.

Other new features announced on Monday include:

• Sending texts via satellite

• Scheduling messages to send later

• Controlling AirPods Pro with head gestures (nodding for yes, shaking for no)

• A dedicated app for passwords accessible across devices

• The ability to hide or lock certain apps behind Face ID or passcodes