Proactive Investors - Apple Inc (NASDAQ:AAPL) is expected to unveil significant artificial intelligence-powered enhancements to its operating system and Siri digital assistant this week, but a survey by UBS finds that user interest is limited.
The addition of powerful AI is seen as marking a strategic move to bolster the Cupertino-based tech giant's offerings amid intensifying competition from Google (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT).
At the Apple Worldwide Developer Conference that begins today, Apple is poised to introduce a suite of new AI features for its iOS operating system that aim to demonstrate a commitment to advancing its AI capabilities, which have lagged behind those of its rivals in the past year.
Central to this update is the addition of 'Apple Intelligence' to devices via an anticipated partnership with OpenAI, the developer behind the widely acclaimed ChatGPT, which was reported by AppleInsider.
This is despite OpenAI's close association with Microsoft, which has a 49% stake.
What would AI do on an iPhone?
According to speculation on the industry website, using AI will make Siri more sophisticated and practical, allowing users to perform a broader range of tasks using voice commands, such as enabling users to send and delete emails, generate “smart replies” within the Mail app, removing unwanted objects or blemishes from Photos images, or introducing voice transcription and summarisation features in Notes and other writing apps.
Apple reportedly wants to encourage wider adoption of Siri's capabilities as a 'personal assistant' beyond the basic functions such as sending text messages or checking the weather that it is primarily employed by most users, while competitors like Microsoft and Google have made significant strides with their digital assistants following the release of ChatGPT.
Microsoft's CoPilot and Google's Gemini, while they have endured some embarrassing glitches, have seen rapid integration into smartphones, with features expanding to include voice and video capabilities.
How it leverages AI represents a pivotal step for Apple against a challenging smartphone backdrop, making this week's WDC the most important event in a decade for Cupertino.
Can’t wait for you to join us at #WWDC24 this morning! pic.twitter.com/3bHzspURPH— Tim Cook (@tim_cook) June 10, 2024
AI interest
However, interest in AI-enabled smartphones is limited, UBS found in a survey, mainly due to high costs and privacy concerns.
Outside of China, generative AI interest is lukewarm, the survey found, with just 27% of respondents indicated they are "interested" in a smartphone with GenAI while 28% noting they are "not interested", with the balance indifferent.
GenAI interest was solid in China but muted elsewhere as cost and privacy are concerns.
A “high price” was cited by 47% of respondents as a key factor that would keep them from buying a GenAI enabled smartphone, while concern around personal privacy was the issue cited by 39% of respondents.
Price was the biggest concern in the US, UK, Germany, and Japan, while the most cited concern in China (61%) was 'privacy' followed by the lack of apps.