Apple's AI Strategy: A Slow and Steady Approach
Source: finance.yahoo.com
Apple held its annual WWDC event and presented various software improvements, including completely new operating system versions. While the event was packed, the company didn't make a big AI announcement like Microsoft and Google did at their developer conferences. Wall Street wants Apple to demonstrate its AI capabilities, and a major unveiling of generative AI-powered Siri could have achieved that.
Instead, Apple is opening its AI software to developers and offering smaller AI features that enhance existing apps. This more deliberate AI strategy might be the company's best approach.
Apple's AI Strategy
IDC's Francisco Jeronimo stated that Apple's AI strategy focuses on integration and developer empowerment rather than consumer-facing AI functionalities. While competitors may move faster, this approach allows Apple to offer unique value based on privacy and integration. Jeronimo added that this is a classic Apple strategy.
The most important AI announcement was opening on-device language models to third-party developers, which could have significant benefits. Morgan Stanley's Erik Woodring said that providing its roughly 30 million developers access to its language models is similar to the App Store launch. The App Store led to a boom in app development and provided Apple with revenue through commissions.
Benefits of Opening AI Models
Opening its AI models to developers could inspire them to create new software options, driving the development of apps and services. Providing access to on-device models also saves developers money by eliminating the need to pay for cloud-based AI models. It also protects user privacy by keeping data on devices such as iPhones, iPads, and Macs. Jeronimo noted that empowering developers is strategically important because it allows Apple to leverage its developer community to add AI capabilities and drive innovation.
Apple's AI Updates
Apple’s AI updates are designed to be more practical. They also align Apple with AI capabilities from Google and Samsung. For example, Apple will offer live real-time translation across its Phone, FaceTime, and Messages apps. Translated voices will sound similar to the person's natural voice, even when translated. Apple also upgraded Visual Intelligence, its visual search app, to understand screen content and search for information online using Google, ChatGPT, or other apps.
Apple also added AI to its Reminders app and introduced a generative AI-powered fitness coach for the Apple Watch's Workout app. These improvements bolster Apple's AI capabilities, ensuring it remains competitive. These incremental improvements will accumulate as developers integrate AI into apps and services, making it a feature of Apple's operating systems. This approach could be what the company needs to succeed in AI.