In his Power On newsletter, Bloomberg’s Mark Gurman says that Apple was caught by surprise at the sudden swell of generative AI tools this year. But they are working hard to catch up with Apple SVPs Craig Federighi, John Giannandrea, and Eddy Cue all in charge of integrating AI-powered functionality into Apple’s products and services.
That will include various new AI features in iOS 18, such as smarter reply suggestions in Messages. Cue is pushing to include features like AI-generated playlists in Apple Music, and exploring how generative AI can be utilized in Apple’s productivity apps like Pages and Keynote. Giannandrea’s team is working on a new, smarter, version of Siri that should be ready to debut next year.
Gurman says embracing AI in end-user features is one of the primary objectives for Apple right now, as it looks to catch up to rivals like OpenAI, Google and Microsoft. Apple is consequently set to spend about $1 billion a year on AI research and product development.
In addition to new features in iOS 18 and Siri, Apple is also looking at ways to enhance the developer experience with AI-enhanced features in Xcode. This would likely include advanced code completion similar to what Github Copilot offers. The company is also looking at ways to streamline its internal AppleCare tools with artificial intelligence.
There is apparently some internal tension about whether to base these features off of AI neural network models running on device, or passed through Apple’s cloud services. Running on-device maximizes privacy, but large language models running on a server farm enable much more sophisticated capabilities. Gurman says Apple will likely decide on a case-by-case approach, with some features running wholly on-device and others relying on a cloud backend.
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