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The Difference in Apple's Approach to AI
Apple's Sober Approach
Apple is taking a sober approach to artificial intelligence (AI) compared to its rivals in the technology industry. While companies like Alphabet (Google), Microsoft, and Meta (formerly Facebook) are constantly talking about AI, Apple rarely mentions it during its earnings calls and events. Apple's executives prefer to use the phrase "machine learning" instead, which is more popular among academics and practitioners. They focus on what their software can do for users, such as organizing photos or improving typing, rather than the underlying technology.
AI Overload from Competitors
During recent earnings calls, Alphabet CEO Sundar Pichai and his team mentioned AI 66 times, Microsoft CEO Satya Nadella and his executives said it 47 times, and Meta CEO Mark Zuckerberg and the Facebook executive team mentioned it 42 times. These companies are stoking excitement and elevating expectations around AI. In contrast, Apple's CEO Tim Cook only mentioned AI twice during an earnings call and didn't mention it at all during a two-hour software launch event. Despite this, Apple announced several new features powered by AI.
AI Products from Rivals
While Apple focuses on its core products like iPhones, its competitors are making bold moves with AI. Google plans to revamp its search engine using an AI model called Search Generative Experience, Microsoft introduced a new $30-per-month Copilot subscription that integrates AI-generated text or code into its apps, and Meta has invested in its own language model called LLaMA for social media chatbots and generating online ads.
Slow Rollout of AI Products
The slow rollout of revenue-generating AI products from big tech companies is causing uncertainty in the industry. Microsoft's CEO, Satya Nadella, tempered investor expectations for its Copilot subscription, while Google's CEO, Sundar Pichai, admitted that it's still early days for AI-powered search. Mark Zuckerberg, CEO of Meta, expressed enthusiasm about AI technology but admitted to not knowing how quickly people will embrace the new features.
The Hype Cycle
Many in the technology industry believe that new foundational technologies go through a "hype cycle," where there is initial excitement and investment, followed by disillusionment before maturity. The slow deployment of AI products could lead to disillusionment if consumer applications don't catch on. However, companies like Nvidia, which provides essential GPUs for AI, and cloud providers are benefiting from the AI boom.
Apple's Approach and Future Plans
Apple remains tight-lipped about its plans for AI, but there are indications that it is investing in the technology internally. Last month, Apple announced new iPhone keyboard software that uses a similar architecture to OpenAI's GPT. While Apple is unlikely to discuss AI extensively during its upcoming earnings call, CEO Tim Cook sees AI as a huge opportunity and will continue integrating it into their products on a thoughtful basis.
Conclusion: Impact on New Business
The difference in Apple's approach to AI could have potential impact on new businesses entering the market. While competitors like Google, Microsoft, and Meta are driving the hype around AI and making bold moves with new products, Apple maintains a more subdued focus on machine learning and quietly integrates AI capabilities into its existing products.
For a new business looking to enter the AI space, there are a few key considerations to keep in mind:
1. Differentiate through User Experience: Apple's approach prioritizes the user experience and focuses on how AI can enhance their products and services without heavy marketing around the technology itself. New businesses should take a page from Apple's playbook and emphasize how their AI offerings can provide practical solutions or improvements for users, rather than getting caught up in the AI hype.
2. Manage Expectations and Deployment: The slow rollout of revenue-generating AI products from big tech companies highlights the importance of managing expectations and carefully planning the deployment of AI solutions. New businesses should ensure they have a clear roadmap for their AI products, setting realistic targets for adoption and taking into account potential challenges or slower-than-expected market acceptance.
3. Invest Wisely in AI Technology: While Apple remains tight-lipped about its plans for AI, there are indications of internal investments in AI technology. New businesses should carefully evaluate the potential of AI and consider strategic partnerships or collaborations with AI-focused companies to leverage existing technologies and expertise.
Ultimately, the impact of Apple's approach to AI on new businesses entering the market will depend on their ability to navigate the changing landscape, differentiate themselves through user-centric approaches, and make smart investments in AI technologies. By learning from Apple's sober approach and adapting their strategies accordingly, new businesses can position themselves for success in the AI industry.
Article First Published at: https://www.cnbc.com/2023/07/28/why-apple-doesnt-talk-about-ai-as-much-as-google-meta-and-microsoft.html
