Apple is expected to make the case next week that it is not being left behind as its global tech rivals move into artificial intelligence.
AI and perhaps even a partnership with OpenAI, maker of ChatGPT, will likely be a driving theme at Monday’s kickoff of Apple’s annual WWDC developer conference in Silicon Valley, analysts say.
The conference is an annual jamboree for developers who create apps and software for Apple’s ecosystem, and CEO Tim Cook will work hard to persuade them that the company is a key player in AI while its rivals Microsoft and Google are rolling out innovations in rapid succession.
Even though Apple has been quietly including AI features in its iPhones, iPads and Mac computers for years, it has yet to solidify its overall strategy or adopt the ChatGPT-style generative AI that has taken the world by storm. 2022.
Apple’s stock price has been on a roller coaster ride since the spark of the AI revolution, but the company’s supporters on Wall Street see next week’s announcements as the start of a new chapter for the iPhone maker.
“WWDC represents the most important event for Apple in more than a decade, as the push to bring a generative AI technology stack to developers and consumers is at the forefront,” Daniel Ives told AFP , senior analyst at Wedbush Equities.
At the heart of the announcements will almost certainly be an update to Apple’s iPhone operating system which is expected to see AI play a central role, according to Ives.
He also predicts a “flagship” partnership with OpenAI involving a proprietary chatbot, which could be part of an upgrade to the much-derided virtual assistant Siri.
Since Apple makes most of its money from selling iPhones and other hardware, AI integrations will likely focus on making its devices and services work together more seamlessly, said Carolina Milanesi, an analyst at Creative Strategies.
“At the end of the day, for Apple, it’s about getting people to upgrade their iPhones,” Milanesi said.
“We’ll see if Apple gives them a compelling reason to do this.”
– ‘Decisive test’ –
Apple’s rival Microsoft has “thrown down the gauntlet” by injecting generative AI features into Windows computers to challenge MacBook laptops, according to Techsponential analyst Avi Greengart.
“The timing is crucial for Apple,” said Gadjo Sevilla, senior analyst at Emarketer.
The WWDC announcements will be a “litmus test” for Apple’s ability to integrate ChatGPT-style generative AI into all of its devices and services, he said.
“Any misstep by Apple at this point could cause it to lose its place as a technology leader, especially since it is now sandwiched between two AI giants with real products and roadmaps that s will extend over the next two years.”
Earlier this year, Apple lost its place as the world’s largest company by market capitalization to Microsoft, with AI chip leader Nvidia quickly closing in.
CEO Cook and his teams have already indicated plans to address the AI challenge by integrating more powerful, AI-ready chips into recent iPad and MacBook releases.
But the big challenge for Apple is how to integrate this technology into its products without weakening user privacy and security, analysts say.
ChatGPT-style AI feeds voraciously on data, and Apple will work to combat the AI race while respecting its traditional stance on protecting data privacy.
“Excessive control of the AI ecosystem could cause Apple to lose ground or fall behind as other companies move quickly and break things,” Sevilla said.
As it moves forward, Apple has little choice but to enter the race.
Market tracker Canalys predicts that 16% of smartphones shipped globally this year will be AI-enabled, and that share will rise to 54% by 2028.
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