The Biggest Change to iPhone Since iPhone

Apple Intelligence revolutionises AI. Built into existing Apple applications such as Photos, Notes and Messages, Apple Intelligence simplifies AI for the average consumer.

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Apple Intelligence

Apple Intelligence is far reaching but potentially confusing.

AI no longer means Artificial Intelligence. It means Apple Intelligence. 

Don’t  take this appropriation of AI lightly. Apple’s ability to shift cultural word usage is exemplified by Google searches for ‘apple’ proffering the company, not the fruit. 

Apple’s AI can help with writing emails, reports, and personal text messages. 

The AI can also create images inside Messages based on your conversations. If you are talking about a trip to France you plan on taking, it can create an image of what that trip might look like.

In Photos, you can search for photos by describing them such as ‘Dad eating ice-cream in Wexford’ or ‘family photo where I was wearing green’.

Priority Notifications appear at the top of the stack to surface what’s most important. And to help users stay present in what they’re doing, Reduce Interruptions is a new Focus that surfaces only the notifications that might need immediate attention, like a text about an early pickup from daycare.

Most AI technologies, such as ChatGPT, offer the world’s information in one place. Apple Intelligence is split into multiple areas and applications based on use-case. 

This approach negates the need for a chatbot and makes the experience seamless. The user may not even realise they are using AI. That’s how Apple products have always worked. And with the widespread fear of AI, this may be wise. 

In typical Apple fashion, AI only works on new products. Apple Intelligence requires phones with the A17 chip or devices with at least M1 chips. That means it can only run on the iPhone 15 Pro and Pro Max, the new iPhones coming out this fall, or any iPad or Mac with an M1 chip or later.

Hey Siri

Siri’s new logo is strangely reminiscent of Meta’s infinite loop logo.

Siri, Apple’s relatively unimpressive voice assistant is getting an upgrade. It can also follow along if users stumble over words, change their request mid-way and maintain context from one request to the next. 

For example, a user can say, “Play that song Josh and I were talking about,” and Siri will locate and play the song, without the user having to remember whether it was mentioned in a text or an email.

Or they could ask, “When is Mom’s flight landing?” and Siri will find the flight details and cross-reference them with real-time flight tracking to give an arrival time.

You can now type requests to the new Siri as well as voice requests. Of course, Google Assistant already has this feature.

Elon’s X War

Elon Musk, CEO of SpaceX and Tesla and owner of X.

Elon Musk was quick to weigh in on Apple’s AI.  If Apple ‘integrates OpenAI at the (operating system) level,” Musk said that would constitute “an unacceptable security violation.’

‘It’s patently absurd that Apple isn’t smart enough to make their own AI, yet is somehow capable of ensuring that OpenAI will protect your security & privacy!’

He added that visitors ‘will have to check their Apple devices at the door, where they will be stored in a Faraday cage,’ referring to an enclosure that blocks electromagnetic waves crucial to communications, including cellular, wireless internet and Bluetooth signals.

‘Apple has no clue what’s actually going on once they hand your data over to OpenAI,’ Musk said in a separate post. ‘They’re selling you down the river.’ 

Musk doesn’t appear aware of the details of Apple’s AI privacy policy. The data isn’t stored or accessible by Apple for further training and user data won’t be shared with ChatGPT, which runs on OpenAI servers.

Apple aims to ‘process as much on the device as possible and with a fallback that explicitly asks users before sending information to OpenAI,’ said Catherine Flick, professor of ethics and games technology at Staffordshire University in England.

Musk should be more cautious before lambasting another company on Twitter. The short form content leaves little room for nuance. Furthermore, he should be aware that his tweets may be the only information someone sees on this topic, thus becoming news, regardless of veracity.

Musk may be blinded by his controversial history with OpenAI. Musk, who co-founded OpenAI in 2015, now runs a rival firm called xAI. 

He has a fraught relationship with his former company and its CEO Sam Altman and is suing them both for allegedly breaching OpenAI’s founding agreement and diverging from its nonprofit mission.

OpenAI has in legal filings dismissed these claims as ‘frivolous,’ ‘extraordinary’ and ‘a fiction’ and has suggested Musk is essentially jealous that he is no longer involved with the company, given its success.

Musk is notoriously unreliable. He has greatly overestimated the advancement of Tesla self-driving several times. Don’t believe everything he tweets.

Repercussions for Google, Microsoft and OpenAI

OpenAI CEO’s presence at WWDC should worry Microsoft.

Google

The OpenAI-Apple collaboration is a setback to Google, which has long paid Apple billions of dollars a year to be its default tool for internet searches. Google paid Apple $20 Billion in 2022 to be the default search engine (Bloomberg 2024).

Apple pulled no punches in their presentation, leaving Google black and blue. ‘We wanted to start with the best,’ said Craig Federighi, Apple’s head of software, on Monday, adding that OpenAI ‘represents the best choice for our users today.’

Microsoft is not afraid to tag team with Apple. Last year, Microsoft CEO Satya Nadella told a journalist that he hoped AI-powered Bing search would at last make Google ‘dance.’

Microsoft

Microsoft has invested more than $13 billion into OpenAI for what is essentially a 49% stake of its earnings. The funding allowed OpenAI to develop some of the world’s most powerful AI tools, helping Microsoft outpace rivals.

However, OpenAI obviously wants an open relationship.  Gene Munster, managing partner at Deepwater Asset Management, said the following of Microsoft CEO Satya Nadella: ‘it has to be a sinking feeling after all that he’s done for OpenAI.’

OpenAI

Integrating its ChatGPT product into Apple’s ecosystem gives OpenAI, which claims about 100 million weekly users, access to a far larger universe of user potential than what it has, even after its meteoric takeoff. Apple says some 2.2 billion of its devices are in use around the world.

ChatGPT has been an unwieldy app for the average consumer to leverage. The Apple Effect will see hundreds of millions try this new technology with no learning curve.

Other WWDC Announcements

You can now arrange your app icons however you like now, changing their colour and moving them to any location on the iOS screen’s familiar grid. Yes, Android has this feature already.

Until now, the iPad didn’t have a calculator app. The new app has a Math Notes feature that lets you use the Apple Pencil or finger to draw maths problems. It gives you the solutions in orange which will update if you change the sum. Children will delight in using this to cheat on their maths homework.

Apple’s payments app has a new feature that allows you to transfer money by holding two iPhones together. Revolut’s CEO will be having a few sleepless nights over this. Revolut’s biggest competitor isn’t other payment apps or the incumbent banks. It’s Apple Pay and Google Pay. Apple already has a credit card and is offering 4.15% APY.

Apple’s Share Price

Apple’s $5 billion headquarters in Cupertino, California.

Apple shares closed up 7% to a new record high of $207.15 per share on Tuesday, the day after the Apple AI launch event.

Morgan Stanley analysts believe the features will drive consumers to upgrade their iPhones, which should ‘accelerate device replacement cycles.’

‘Following a WWDC that delivered on the key details we were focused on heading into the event, we have even greater conviction that Apple is on the cusp of a multi-year product refresh and a stock rise from $216 to $270 per share.’

Conclusion

Don’t miss out on the €5,000 Trading Online Voucher Scheme. Take this quiz to find out if you are eligible: https://funnels.cosmos.ie/trading-voucher and forward this email on to anyone who may be interested.

Which feature of Apple Intelligence are you most excited to use? Leave a comment below.Want to leverage AI in your marketing? Tony Pathrose is our AI expert. Have a chat with him about how AI can accelerate your business goals.

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