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Generative AI has been much hyped over the last year and a half since the introduction of ChatGPT.
But most people don’t use AI on a daily basis outside of AI search results or interacting with AI chatbots when contacting customer service.
Could Apple's (AAPL) personalization pitch, “AI for the rest of us,” be the long-awaited killer use case?
Investors, who drove the company's shares to an all-time high on Tuesday (after a lukewarm initial reaction to Monday's AI product announcement), seem to think so.
Many analysts predict the new features will drive iPhone upgrade cycles.
Many others, including Laura Martin of Needham, found the preface “disappointing.”
She writes: “Nothing I heard during the WWDC keynote led me to believe that consumers will buy iPhones sooner than currently projected. GenAI was the best hope, but it has failed.”
So far, investors are willing to bet on some hype when it comes to AI.
Nvidia (NVDA) saw triple-digit revenue growth driven by data center demand centered around AI training. We heard about new AI capabilities touted by companies ranging from Salesforce (CRM) to Adobe (ADBE). In fact, Yum Brands, owner of Taco Bell, showed us how they're using AI.
As my colleague Ethan Wolfman wrote in yesterday's Morning Brief, AI is rumored to transform enterprise productivity (although whether it actually does so remains to be seen).
The challenge for Apple — and for Alphabet (GOOG, GOOGL) and Microsoft (MSFT) — is to prove to consumers that they need AI capabilities.
Apple may be late in developing AI, but it is the company with the most promise for integrating it into the devices we see all day.
There are an estimated 1.5 billion iPhone owners, and while not all of them will have access to the new features, more and more people outside of Silicon Valley will be using iPhones and understanding the benefits of AI.
“The number of people using generative AI will grow from hundreds of millions to billions,” DA Davidson's Gil Luria told Yahoo Finance.
He says the killer use cases are here: “When you can tell your device, 'Hey, when is Dad landing? Where can I take him for lunch?', that's something only Apple can do. Apple is going to build all of this into our experiences, so that these experiences can leverage our own information to perform tasks as a proactive agent.”
If he is right, then to use is to believe.
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