Apple plans to introduce a subscription model for its artificial intelligence (AI) and upcoming features. A report from Bloomberg reveals that the company, which collectively refers to its AI features as Apple Intelligence, will initially offer these tools for free on compatible Apple devices later this year. However, Apple has a long-term plan to monetize these features.
Increase sales and revenue
Apple wants to boost sales of its new devices by equipping them with software improvements and advanced artificial intelligence features. The slowdown in hardware upgrades has led the Cupertino-based tech giant to consider relying more on service fees and subscriptions.
Apple Intelligence Plus
The report suggests that Apple sees an opportunity to boost both new device sales and revenue by making Apple Intelligence a paid service. The potential launch of Apple Intelligence Plus could provide subscribers with more advanced AI models and new features.
Immediate focus
Despite these plans, Apple does not plan to charge for AI features in the near future. The company is currently focused on perfecting the AI model that powers Apple Intelligence. By offering Apple Intelligence at no additional cost, Apple will be able to gather crucial feedback on its performance and capabilities, which is essential for perfecting the model.
Collaborations
As Apple looks to improve its own AI services, the company is also considering new partnerships. According to Bloomberg, Apple is in talks with Google and Amazon-backed Anthropic. The company is likely looking to integrate AI-powered features from these partners into its operating system for iPhones, Macs, and iPads. A potential deal with Google could be announced ahead of the release of iOS 18, iPadOS 18, and macOS Sequoia, which is expected to coincide with the launch of the new iPhone series in September.
Apple is expected to integrate Google’s Gemini AI into its platform in the same way it integrated OpenAI’s ChatGPT. It’s important to note that OpenAI’s ChatGPT does not power Apple Intelligence; the two systems independently provide AI capabilities on the same device. Users must allow apps and services to send queries to OpenAI’s ChatGPT.
First published: July 2, 2024 | 10:30 a.m. IST
