Written by Aditya Soni and Stephen Nellis
(Reuters) – Apple Inc is expected to showcase how it is integrating artificial intelligence across its software suite, including a revamped Siri voice assistant and a potential tie-up with ChatGPT owner OpenAI, at its annual developers conference on Monday.
There's a lot more at stake at Apple's Worldwide Developers Conference (WWDC 2024) than at previous such events, as the iPhone maker seeks to reassure investors that it hasn't lost the AI battle to Microsoft (NASDAQ: ) even though it may have lost a little. Of which. Tours.
Analysts said Apple will have to explain to the vast majority of its billion-plus users – most of whom are not technology enthusiasts – why they want the new generation of artificial intelligence that has swept Silicon Valley.
“Apple will make an offer,” said Ryan Reith, an analyst at market research firm IDC. “If they succeed, they will likely get the consumer actually interested in AI because up until now it has been mostly enterprise-related.”
Apple has been using artificial intelligence behind the scenes for years to power features on its devices, such as the ability of its watches to detect collisions and falls. But it has been reluctant to promote how the technology enhances functionality in its devices, as Microsoft did with the help of its early bet on OpenAI.
Microsoft overtook Apple as the world's largest company by market capitalization in January, and Apple shares have lagged behind other major technology stocks this year. AI chip giant Nvidia (NASDAQ:) briefly overtook Apple last week as the world's second-most valuable company, underscoring to some investors a power shift in the technology world.
“Apple's early reticence toward AI was entirely about the brand,” said Dipanjan Chatterjee, an analyst at Forrester. “The company has always been obsessed with what its offerings do for its customers rather than how it does it.”
He added: “But the silence of artificial intelligence has become deafening. All that will change on June 10.”
Apple uses its developer conference at its headquarters in Cupertino, California every year to showcase updates to its apps and operating systems as well as to show off new tools developers will be able to use in their apps.
Siri arrangements
Apple is expected to enable Siri to essentially control multiple apps on behalf of the user. This has proven difficult because Siri needs to understand the user's precise intentions as well as how the app works.
For example, if a user asks Siri to delete an email, Siri needs to understand which email the user wants to delete and how that functionality works, for example, on Microsoft Outlook versus Gmail.
Apple tried to make Siri smarter in 2018 with tools that allowed developers to code into their apps in ways that gave Siri more control, but few showed interest.
Now, Apple is expected to revamp its Siri core software with generative AI. Apple and OpenAI have reached an agreement to integrate ChatGPT Maker technology into Apple's next iPhone operating system, iOS 18, media outlets reported.
Some Apple investors are confident that new artificial intelligence features will boost sales of new iPhones at a time when the company faces strong competition in China and slowing growth in the United States.
“This should translate into a strong refresh cycle for Apple devices” in 2025, said Dan Ai, chief investment officer at Fort Pitt Capital Group, which owns Apple (NASDAQ:) stock. Ai expects Apple to restrict some AI features In older models to entice people to buy newer phones.
Artificial intelligence chips
Earlier this month, Apple unveiled a new AI-focused chip in its latest iPad Pro models, and analysts expect the company to provide details to developers on how the chip's capabilities will be used to support all the new AI computing.
The company may also start talking about its own cloud computing capabilities amid reports that Apple plans to use its own chips inside data centers for the first time.
Apple recently hired Sumit Gupta, former CEO of Google (NASDAQ:) and IBM (NYSE:) CEO who worked on developing the AI data center at both companies.
By using its own chips for cloud services, Apple can roll out advanced AI features that devices can't handle on their own, without the need for expensive Nvidia processors. This approach also retains many of Apple's privacy and security features that are built into the design of its internal chips.
The developer conference continues until Friday.
