Apple has been singled out by many as the only tech mogul that has not had a growth curve in the realm of AI. It is often assumed that they are either playing catch up or are too busy to give AI technology their undivided attention because their hands are already full. This is the story that has been driven to the forefront about Apple and its being late to the party. However, the danger of a single narrative is that we often forget that there is more than one perspective to a story. At face value, Apple may not have made its big AI breakthrough, but what if it’s a strategic move made by the company, one that has gotten all the powerful chess pieces of the other companies to the front lines while being discreet about the treasures that they are sitting on.
The road less taken
Despite the lack of noise, Apple has acquired over two dozen AI companies since 2015. While these companies may not be prestigious names, their technologies have been integrated into Apple’s products and services such as smartphones, computers, music and TV services, including the upcoming Vision Pro mixed-reality headset. As opposed to other leading names in tech, Apple has maintained a low-profile approach to its AI acquisitions and overall strategy, keeping its research and development in AI largely confidential. It appears that the other companies embracing AI so rapidly and vigorously are helping Apple to gauge the AI technology that needs to be integrated and the ones that should be struck out.
A point of departure for assuming that Apple is brewing up a storm in their laboratories that will take other companies down is that while its competitors are vying to build standalone generative AI models, Apple is capitalising on targeted machine learning infrastructure. In the same vein, Apple’s vision for the future involves powerful handheld devices that can perform machine learning tasks on data gathered by their own onboard sensors. This approach contradicts the cloud-centric model favoured by a majority of tech companies.
Naturally, it has become Apple’s trademark to maintain an approach that is more cautious when divulging its AI initiatives. However, if we take a look at the latest iPhone and Watch models, it can be spotted that there is a subtle integration of AI into their systems. The iPhone 15, for example (despite faring poorly), includes AI features such as personal voice synthesis, real-time voicemail transcription, and AI-enhanced camera functions that can distinguish between humans and animals in photos. Apple Watch Series 9 and Ultra 2 also collaborate with AI to improve the double-tap feature, improve display brightness, optimise Siri’s functionality, and advance health monitoring capabilities. Furthermore, at the heart of Apple’s strategy is the plan to execute machine learning algorithms directly on its devices using central processing unit (CPU) or graphics processing unit (GPU) chips incorporated into their smartphones, smartwatches or speakers. Back when the iPhone X hit the market, Apple had introduced the Neural Engine in its models, a custom-designed chip dedicated to executing the neural net calculations essential for deep learning. A feature that further develops functions such as Face ID, camera features, augmented reality, and battery management. In-device AI allows for faster data processing without having to rely on cloud-based insights, which can reduce latency. It is impressive to see that even with the downside of device-based algorithms being unable to profit off of the vast crowdsourced datasets available in cloud machine learning, Apple is willing to go the distance to commit to user data privacy. During the process of inculcating AI to better their devices, Apple will ensure that sensitive personal data remains on the device for machine learning processing and solidify the trust that they share with consumers regarding data security and privacy.
Moreover, Apple’s chance of becoming successful in AI stems from a confluence of factors. It can leverage its substantial device base, along with growing user engagement and the increasing adoption of paid subscriptions over time. As of early 2023, the public’s interest in AI has surged, exemplified by ChatGPT’s performance with over 100 million active users and more than 1 billion monthly visits. According to Forbes, Apple’s installed active device base exceeded 2 billion last February. So did that of the subscriber base. Apple’s expansive installed base presents an opportunity to provide AI access to more than ten times the number of individuals compared to other platforms.
How much is Apple investing in AI?
A lot. Data presented by reports suggest a $1 billion annual expenditure; experts believe Apple may allocate up to $5 billion each year. This investment, which has already hit its $10 billion mark during recent years for AI research and development, is aimed at establishing the foundation for an AI app store. A platform which will allow developers to create AI applications. Apple’s goal is aligned with delivering a conversational AI model that enables voice-assisted multi-step task automation, integrated with Siri. Apple’s AI efforts have led to the crafting of an Apple GPT chatbot rumoured to outperform the ChatGPT model.
Since there is an ever-evolving demand for smart, reliable voice assistants, Apple is poised to monetise and implement advanced AI in consumer applications. An appealing strategy that will be accepted with enthusiasm by millennials, with more than 42% of them willing to pay $10 or more per month for an efficient and helpful assistant. Prospects as such make Apple’s investments in AI, justifiable. If you zoom out and observe the bigger picture, even though none of us are let in on their secret tactics in pursuing AI, what is clear as the day is how Apple is not going to ride the AI bandwagon. While many claim that trying to swim upstream and defying the flow may cost them more than they bargain for, Apple’s resolution to digress from the mainstream tells us that they have got a plan.
(Sandunlekha Ekanayake)