Is Apple Secretly Turning More And More Into An AI Company?

Apple Inc. AAPL may be doing more in the artificial intelligence (AI) space than its public messaging shows, as seen in some of its latest product upgrade announcements.

The latest manifestation of this transition is an upgrade to its autocorrect feature, announced on Tuesday, which now leverages AI to consider the context of words in a sentence.

What Happened: The new autocorrect feature uses sophisticated language models to check words against their context in a sentence, rather than just a dictionary, The Atlantic reports.

This means it won’t suggest “consolation” when you mean “consolidation,” because it’ll understand that those words aren’t interchangeable.

Other AI-powered updates include the Photos app’s ability to differentiate between your dog and other dogs, and AirPods adjusting to background noise based on your listening over time.

Despite these AI-driven features, Apple’s conference unveiling the updates made no mention of AI, instead using more technical language such as machine learning or transformer language model.

Why It Matters: Apple’s incremental approach to AI has been a topic of interest among investors, who are reportedly more intrigued by the company’s AI-related initiatives than its AR/VR headset.

Investors are showing greater interest in Apple’s AI-related endeavors, particularly in the development of chatGPT-like services.

The company’s cautious approach to AI contrasts with the aggressive pursuit of AI by tech giants like Microsoft and Alphabet.

However, despite Apple’s not-so-proactive approach, it could be the “one to benefit no matter where the industry goes,” according to Wedbush analyst Daniel Ives.

Apple’s AI strategy is expected to be front and center at the WWDC, with the company likely to discuss how it can integrate and ultimately monetize its customer base around future generative AI.

Apple is expected to have its own AI-driven solution that will be integrated into the Apple ecosystem, enabling customers to further tap into their iOS data, video, music, applications, and Apple devices through next-generation AI capabilities.

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