Apple brings ChatGPT and more AI to devices

Apple unveiled a long-awaited AI strategy on Monday, integrating its new "Apple Intelligence" technology across its suite of apps including Siri and bringing OpenAI's chatbot ChatGPT to its devices.

In the nearly two-hour long presentation at Apple's annual developer conference, executives including CEO Tim Cook touted how voice assistant Siri would be able to interact with messages, emails, calendar, as well as third party apps. Siri will be able to write emails and change the tone of voice to suit the occasion.

Long known for a focus on user safety, the iPhone maker also signaled it plans to differentiate itself from rivals Microsoft and Google by placing privacy "at the core" of its features.

But Wall Street - looking for more dazzling AI features and reassurance that would put Apple in good standing to compete on AI with market-leader Microsoft - was lukewarm on the event. Apple shares closed down nearly 2%.

Apple's stock, which trails those of other Big Tech firms this year, had rallied 13% last month in the run-up to the event.

"There isn't anything here that propels the brand ahead of its as-expected trajectory of incrementalism," said Dipanjan Chatterjee, analyst at Forrester.

"Apple Intelligence will indeed delight its users in small but meaningful ways, it brings Apple level with, but not head and shoulders above, where its peers are at."

Apple's approach contrasts with the enterprise-first focus of its rivals. The company hopes these moves will convince its more than 1 billion users - most of whom are not tech aficionados - on the need for the nascent technology.

Apple executive Craig Federighi called Apple Intelligence as "AI for the rest of us."

Apple still remains overly reliant on sales of the iPhone and some analysts said any boost from the new AI features was unlikely to materialize in the short term.

"In this early race, it feels that Alphabet, and even more so Microsoft, are in better shape following their initial moves and with thanks to their cloud assets," said Paolo Pescatore, analyst and founder of PP Foresight.

The AI features announced at Apple's Worldwide Developers Conference will come with the latest operating system for its devices, which were also demonstrated at the event.

Apple uses the event at its Cupertino, California, headquarters each year to showcase updates to its own apps and operating systems as well as to show developers new tools they will be able to use in their apps.