Apple is known for its innovative and high-quality products, such as the iPhone, iPad, Mac, Apple Watch, AirPods, and more. However, the tech giant has been lagging behind its rivals in one crucial area: artificial intelligence (AI). Apple is making a strategic move to conquer the field of artificial intelligence (AI). In this post, we’ll explore how Apple is investing a staggering $1 billion annually to surge ahead in the AI market.
What is AI and Its Significance
AI, or artificial intelligence, is the technology that empowers machines to perform tasks that typically necessitate human intelligence. From understanding natural language to recognizing images and even generating content in the form of text, sound, or visual, AI is the driving force behind growth and innovation in various industries. Here we can include e-commerce, entertainment, education, healthcare, and much more. If there is a need for AI in any given field, wait it up for three to five years and you will be impressed with the advancements.
Apple’s Unique Approach
However, Apple has been relatively silent, slow, and secretive in developing and deploying its own AI products and features. While competitors like Google, Microsoft, and Amazon have launched impressive AI products and features, such as Google Bard, Microsoft Azure AI, and Amazon Alexa, Apple has mostly used AI to improve its existing products and services, such as Siri, Photos, and Apple Music.
The Game-Changing Move
But that is about to change. According to a recent report CNBC, Apple is planning to spend $1 billion per year on developing its generative AI products. Generative AI is a branch of AI that can create new and realistic data, such as text, images, videos, and more. For example, Google Bard can generate natural-sounding text based on a given prompt or topic.
Apple’s generative AI efforts are reportedly led John Giannandrea, SVP of machine learning and AI strategy; Craig Federighi, SVP of software engineering; and Eddy Cue, head of services. The company has built its own large language model (LLM) framework, known as Ajax, as well as a rumored chatbot, known internally as Apple GPT. Neither has been incorporated into its products yet.
Applications in Apple’s Ecosystem:
According to a recent Bloomberg report, Apple is looking to use AI to enhance Siri, Messages, and Apple Music. For example, Apple could use AI to create auto-generated playlists for Apple Music users based on their preferences and moods. Apple could also use AI to improve Siri’s conversational abilities and provide more personalized and relevant responses. Moreover, Apple could use AI to create new and engaging content for Messages users based on their interests and contexts.
Apple is also exploring using AI in Xcode, its integrated development environment (IDE) for app developers. Apple could use AI to assist app developers with coding suggestions, debugging tools, testing features, and more. This could make app development easier and faster for both novice and experienced developers.
Apple Market Response and Potential
Apple’s $1 billion investment in AI shows that the company is serious about catching up with its competitors in the AI market. The market has reacted moderately optimistically to Apple’s AI push. The firm’s shares have surged nearly 37% in 2023. Analysts have given Apple’s stock 20 Buys and nine Holds¹, with an average price target of $207.51, suggesting a 20.2% upside potential.
The Future of AI and Apple
Apple is known for its ability to create products that delight its customers and disrupt the market. With its generative AI products and features, Apple could storm the AI market and create new online viral trends with AI news. It will be interesting to see how Apple’s AI products and features will shape the future of technology and society.
