SAN FRANCISCO: Apple on Monday will try to convince skeptics of its AI strategy as rivals get ahead in adopting the technology.
AI, and Apple's partnership with ChatGPT developer OpenAI, are likely to be major themes at the opening of Apple's WWDC developer conference in Silicon Valley, analysts say.
The conference is Apple's annual gathering for developers building apps for the iPad, Mac and iPhone, and CEO Tim Cook will be trying hard to convince the audience that the company is a major player in the AI field.
Apple has been quietly building AI capabilities into its hardware for years, but has yet to solidify its overall strategy or embrace the ChatGPT-style generative AI that took the world by storm in late 2022.
Meanwhile, rivals Microsoft and Google have been announcing products in rapid succession, and Microsoft and AI chip maker Nvidia have overtaken Apple to become the world's largest companies, as measured by stock price.
Apple's stock price has been on a rollercoaster ride since sparking the AI boom, but Apple devotees see Monday's announcement as the start of a new chapter for the iPhone maker.
“The silence has been deafening, but that will all change when Apple crosses the AI Rubicon on June 10,” predicted Dipanjan Chatterjee, an analyst at research firm Forrester.
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The centrepiece of the announcement will almost certainly be an update to iOS 18, Apple's iPhone operating system, with AI expected to play a central role.
Silicon Valley is convinced that generative AI will dramatically change how people interact with their smartphones and computers, but the technology is still in its early stages and its benefits are not yet fully clear.
There have also been many rumors of a “flagship” partnership with OpenAI that could lead to a chatbot specifically for iPhone users, as well as an enhancement to the much-maligned Siri.
Daniel Ives, a senior analyst at Wedbush Securities, said all these announcements will set the stage for the launch of the iPhone 16 later this year and open the door to a “return of growth” for the company.
Because Apple makes most of its money from selling iPhones, its AI will likely focus on making its devices and services work more seamlessly together, said Carolina Milanesi, an analyst at Creative Strategies.
“At the end of the day, what's important to Apple is getting people to upgrade their iPhones,” Milanesi said. “The question is whether Apple will give them a compelling reason to do so.”
'Litmus test'
Gadjo Sevilla, a senior analyst at Emarketer, said the WWDC announcement will be a “litmus test” of whether Apple can integrate generative AI like ChatGPT into all of its devices and services.
“Any misstep by Apple at this point could cost it its status as a technology leader, especially since it's now sandwiched between two AI giants with actual products and release roadmaps spanning the next two years.”
Cook already teased Apple's push into AI with more powerful, AI-enabled chips in the iPad and MacBook that were released earlier this year.
But analysts say a big challenge for Apple is how to incorporate the technology into its products without undermining the company's focus on user privacy and security.
ChatGPT-style AI will devour data voraciously, so Apple will have a hard time fighting the AI race while upholding its traditional position on protecting data privacy.
“If Apple over-controls the AI ecosystem, it could lose ground or fall behind while other companies move quickly and innovate,” Sevilla said.
