Apple Intelligence, Powered By ChatGPT. Genius Move Or Desperate Gamble?
why exactly did Apple partner up with OpenAI ?
On the first day of their annual WWDC last month, Apple unveiled their (very) long awaited AI strategy. In typical Apple fashion, the company had previously said little to nothing on the topic. This stance stood in sharp contrast with Microsoft’s high profile, all in approach ever since ChatGPT became a thing.
On their second quarter earnings call back in May, Apple CEO Tim Cook had brushed aside three separate attempts by analysts to probe the company’s AI strategy:
I don’t want to get in front of our announcements, obviously. I would just say that we see Generative AI as a very key opportunity across our products. And we believe that we have advantages that set us apart there. And we’ll be talking more about it as we go through the weeks ahead.
However, in the prepared remarks on that same earnings call, we got the sense that Apple already considered itself to be heavily engaged in delivering AI capabilities through its products and services:
The world’s most popular laptop is the best consumer laptop for AI with breakthrough performance of the M3 chip and it’s even more powerful neural engine.
Customers are loving the incredible AI performance of the latest MacBook Air and MacBook Pro models.
Across our watch lineup, we’re harnessing AI and machine-learning to power lifesaving features like a regular rhythm notifications and fall detection.
This is interesting from a branding & positioning perspective. Even prior to their WWDC reveal, Apple was telling us that they already have their version of the AI PC, or the CoPilot+ PC as Microsoft would have us refer to it. Furthermore, already existing features of the Apple Watch, rhythm notifications and fall detection, are now deemed to be powered by “AI”. Well ok then.
On to the WWDC. Of the roughly two hour long opening session, approximately half was dedicated to Apple’s AI strategy. In summary, their strategy has three basic components:
#1 An upgrade/overhaul to Siri
#2 A bunch of new features across their MacBook, iPad and iPhone products
#3 A partnership with OpenAI which allows for ChatGPT to be called upon to deal with user queries that Apple deems better served in this manner, with the user being asked to confirm the action in each case.
In addition to these three components, Apple put a lot of effort into stressing the security and privacy of their approach. Oh and they also nabbed the “A” in artificial intelligence for themselves, i.e. Apple Intelligence. Amazon and Alphabet must be kicking themselves for having missed the boat on that opportunity :-)
There’s been quite a bit of media coverage since the event, as you might expect. Most of it was favourable, some variously describing “Apple Intelligence” as a thoughtful, considered, mature approach to this complex technological landscape. More specifically, many were flabbergasted by the OpenAI partnership. When they gave up on trying to figure out what it meant, the default conclusion seemed to be that it was a genius move on Apple’s part. Are they correct? More broadly, how should we frame out thinking about “Apple Intelligence”? Let’s dig in….
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