Will Artificial Intelligence Drive Repeat Purchases of Apple Products?

2024-06-12

Since the public release of ChatGPT in 2022, Apple has not talked much about generative artificial intelligence (AI).

However, on Monday, its CEO announced a series of AI products, including collaborations with chatbot manufacturers and Apple's own personalized AI system, "Apple Intelligence."

Apple Intelligence is a collection of features that include text and image generation, as well as improved Siri voice assistant, which will be supported by integrating the already popular ChatGPT into the company's phones.

This new product has faced criticism due to security concerns over allowing Siri to mine information from a range of applications accessed by users.

However, with iPhone sales stagnating and competition intensifying in the Chinese market, including rivals like Microsoft and Meta vying for the position of the next AI technology leader, Apple is facing increasing pressure from shareholders to seize the opportunity and launch AI innovations.

For Apple, the challenge lies in its core business of selling products to consumers, not companies.

Over the years, generative AI has been integrated into its products in the form of Siri and satellite navigation.

To take this to the next level, any new product must significantly improve the consumer experience of using an iPhone, iPad, or other Apple products.

"Generative AI is still in its early stages, and no consumer-facing brand has truly cracked the code," said Thomas Husson, Vice President and Principal Analyst at research firm Forrester.

"Apple is no exception, and despite the unreasonable high expectations people have for Apple's announcement of groundbreaking generative AI innovations, the reality is that Apple's approach at its Worldwide Developers Conference remains consistent: providing tools for the developer community to improve the consumer experience on Apple devices."

He added that at the conference, Apple "always avoids mentioning the overhyped generative AI frenzy and emphasizes that they have been investing in many different AI technologies, such as machine learning, for quite some time."

For Apple, the question still remains: Will AI innovation become the core reason for purchasing Apple products?