Apple commences yearly developer gathering with AI as the focal point
The annual developer conference by Apple has started off, with the tech behemoth poised to exhibit how it is incorporating artificial intelligence throughout its software suite, including an enhanced Siri voice assistant and a potential collaboration with ChatGPT owner OpenAI.
The Apple Worldwide Developers Conference (WWDC 2024) holds more significance compared to past events, with Apple looking to reassure investors that it remains competitive in the AI arena against Microsoft despite setbacks.
Analysts mentioned that Apple must demonstrate to the vast majority of its over 1 billion users – many of whom are not technology enthusiasts – the appeal of the new wave of AI prevalent in Silicon Valley.
“Apple is set to put on an impressive display,” stated Ryan Reith, an analyst at market research firm IDC.
“If they succeed convincingly, they have the potential to pique consumer interest in AI, as it has predominantly been focused on enterprise applications thus far.”
Apple has been leveraging AI for years behind the scenes to enhance features on its devices, such as crash and fall detection on its watches.
However, Apple has been hesitant to highlight how this technology enhances device functionality, unlike Microsoft, which embraced OpenAI early on.
In January, Microsoft surpassed Apple as the world’s most valuable company by market capitalization, and Apple’s stock performance has lagged behind other major tech firms this year.
“Apple’s initial reluctance towards AI was consistent with its brand image. The company has always been known for its focus on how its offerings benefit customers rather than the technicalities,” remarked Forrester analyst Dipanjan Chatterjee.
“However, the silence on AI eventually became conspicuous. All of that is set to change on June 10,” he added.
Apple utilizes the developer conference at its Cupertino, California headquarters each year to unveil updates to its apps and operating systems, along with showcasing new tools for developers.
Revamping Siri
Apple is anticipated to empower Siri to effectively manage numerous apps on behalf of users. This presents a challenge as Siri must comprehend the user’s exact intentions and familiarize itself with how each app functions.
For instance, if a user instructs Siri to delete an email, Siri must ascertain which email to delete and understand the deletion process, whether in Microsoft Outlook or Gmail.
In 2018, Apple attempted to enhance Siri’s intelligence by enabling developers to incorporate functionalities allowing Siri more control, but interest was limited.
Apple is now expected to overhaul Siri’s core software with generative AI. Reports suggest Apple and OpenAI have collaborated to integrate the ChatGPT maker’s technology into Apple’s next iOS version, iOS 18.
Some Apple investors are optimistic that these new AI features will drive sales of new iPhones, particularly amid strong competition in China and sluggish growth in the U.S.
“This is likely to translate into a robust hardware refresh cycle for Apple in 2025,” stated Dan Eye, Chief Investment Officer at Fort Pitt Capital Group, a holder of Apple shares. Eye anticipates Apple to limit some AI features to newer models to entice customers to upgrade their phones.
AI-Optimized Chips
Apple recently introduced a new AI-centric chip in its latest iPad Pro models, with analysts expecting the company to inform developers on leveraging the chip’s capabilities to support advanced AI computing.
Furthermore, Apple might delve into its cloud-computing capabilities, amidst rumors of using its chips in data centers for the first time.
Sumit Gupta, a former Google and IBM executive with experience in AI data center development, was recently hired by Apple.
By employing its chips for cloud services, Apple can introduce sophisticated AI features that standalone devices may not handle, without the need for costly processors like those from Nvidia.
This approach also retains Apple’s privacy and security features embedded in its in-house chip design.
The developer conference will continue until Friday.
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