Apple just announced a long-awaited AI update : NPR

Apple made a significant move into the realm of artificial intelligence on Monday by unveiling a long-awaited update to its digital assistant Siri and modifications to its operating systems designed to enhance AI integration.

Despite the announcement, Apple’s stock price dropped nearly 2%. Analysts recognize the potential of these updates but remain cautious about their reception until they are publicly available later this year.

The revamp of Siri has faced multiple postponements, raising doubts about Apple’s dedication to AI at a time when chatbots and digital agents are becoming prominent, spurred by significant AI investments from other firms.

“Today marks a major advancement,” stated Craig Federighi, Apple’s senior vice president for software design, at the Worldwide Developers Conference (WWDC) in Cupertino, Calif. He emphasized Apple’s commitment to utility and user privacy.

“Some seem to be rushing into AI development without considering the individuals it’s intended to benefit,” he continued. “We believe that effective AI should prioritize user needs.”

While AI tools like OpenAI’s ChatGPT and Anthropic’s Claude have impressed users with their capabilities, Siri has lagged behind. Apple’s new version was showcased through a series of video demonstrations highlighting its capabilities.

The new Siri, named Siri AI, will be accessible via a standalone app and through the search function on Apple device home screens and various other apps, such as Photos. It will connect to cloud computing networks and the internet while drawing on personal experiences and information from users’ Apple devices, such as email and text message history.

Apple executives demonstrated how Siri AI could retrieve online information, suggest menus, extract details from texts or emails, and organize photos into albums.

A ‘prove-it moment’ for Apple

Ben Bajarin, CEO of tech research company Creative Strategies, mentioned that Siri’s current limited functionality sets a low bar for improvement. He noted Apple’s advantageous position to introduce AI to a wide audience through its popular devices.

“It appears to be a substantial upgrade,” Bajarin said of the revamped Siri and Apple’s enhanced AI integration. “It will seamlessly fit into many existing consumer activities.”

He added, “We must wait to evaluate its actual performance.”

Francisco Jeronimo, an analyst with IDC, suggested that Apple aims for AI to integrate seamlessly into the operating system, rather than focusing on AI interaction.

“If Apple can make AI feel intuitive, secure, and beneficial for mainstream users, it could not only strengthen its ecosystem but also redefine consumer expectations for devices,” he said.

According to conference presenters, Siri AI will be available to U.S. users later this year in English, with more languages to follow. However, it won’t immediately launch in the European Union or China due to regulatory constraints.

In an effort to catch up in AI, Apple has partnered with its major hardware competitor, Google. In January, they announced a multi-year collaboration using Google’s Gemini AI model as the foundation for Apple’s AI systems.

Daniel Newman, CEO of the Futurum Group, considers Apple’s current situation a “prove-it moment.”

“My initial reaction, which might explain the stock decline, is that it checks a box but remains uninspiring,” Newman remarked.

“Given the inconsistent AI rollout by Apple over recent years, it’s uncertain whether they can be relied upon this time. The real test will be in delivering and executing the promises,” he added.

Newman acknowledged the potential in Apple’s commitments announced on Monday, recognizing the demand for an improved Siri. Investors might appreciate Apple’s strategy of “renting” Google’s Gemini instead of investing heavily in internal AI development like many other tech firms.

Additionally, Apple introduced new parental controls for children’s app and content access, including restricting website browsing, app downloads, contact permissions, and device usage time.

These updates coincide with a wave of lawsuits against AI and social media companies, alleging harm to minors, such as mental health issues and exposure to inappropriate chatbot conversations.

Tim Cook’s last WWDC as Apple’s CEO

Apple CEO Tim Cook began and concluded the main session with brief remarks at what is expected to be his final WWDC, though he did not participate in the product unveilings.

In April, Cook revealed that in September he will pass leadership of the company he helped elevate to one of the world’s most valuable to John Ternus, a mechanical engineer who currently oversees Apple’s hardware development, including Mac computers and iPhones.

In an April letter announcing the leadership transition, Cook praised Ternus for having “the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and honor.”

Despite criticisms of Apple’s AI strategy, the company has thrived under Cook, with its share price increasing by about 2,000% on a split-adjusted basis over his 15-year tenure as CEO. Cook expanded Apple’s range of revenue-generating services with offerings like Apple Pay, Apple Music, and Apple News+, and introduced a line of custom microchips for its products.

However, Cook has faced criticism for depending on China as Apple’s manufacturing base, a decision that improved supply chain efficiencies but posed political risks that the company is now seeking to mitigate through diversification.

Critics also argue that Cook lacks the innovative flair of his predecessor Steve Jobs, instead delivering a series of incremental updates to devices over the years.

Concluding the morning keynote on Monday, Cook expressed optimism for Apple’s future, stating that “the best is still ahead” and emphasizing the company’s commitment to creating exceptional products that enhance user experiences.

“It’s been the honor of a lifetime to help advance that mission with teams whose creativity, care, and conviction continue to make a lasting difference in people’s lives,” he said.

Note: Apple and Google are financial supporters of NPR.