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Apple on Monday unveiled a long-awaited AI strategy that will integrate new “Apple Intelligence” technology into its suite of apps, including Siri, and bring OpenAI’s ChatGPT chatbot to its devices.

In the nearly two-hour presentation at Apple’s annual developer conference, executives, including CEO Tim Cook, touted how the voice assistant Siri can interact with messages, emails, calendars and third-party apps. Siri will be able to write emails and change the tone of voice depending on the occasion.

The iPhone maker has long been known for its focus on the security of its users, and has now signaled that it wants to differentiate itself from its rivals Microsoft and Google by putting privacy “at the heart” of its features.

However, Wall Street – which is looking for even more impressive AI features and the certainty of putting Apple in a good position to compete with market leader Microsoft in the AI ​​space – was more cautious in its reaction to the event. Apple shares closed down almost 2 percent.

Apple shares, which have lagged behind those of other major technology companies this year, rose 13 percent in the run-up to the event last month.

“There’s nothing here that takes the brand beyond its expected trajectory of incremental growth,” said Dipanjan Chatterjee, an analyst at Forrester.

“Apple Intelligence will indeed delight its users in small but meaningful ways. It puts Apple on par with its competitors, but not way above them.”

Apple’s approach contrasts with the more enterprise-focused approach of its competitors. The company hopes these moves will convince its more than one billion users – most of whom are not techies – of the need for the new technology.

Apple executive Craig Federighi called Apple Intelligence “AI for the rest of us.”

Apple is still overly dependent on iPhone sales, and some analysts believe that a boost from new AI features is unlikely in the short term.

“In this early race, it seems that Alphabet and even more so Microsoft are in better shape after their first steps and thanks to their cloud resources,” said Paolo Pescatore, analyst and founder of PP Foresight.

The AI ​​features announced at Apple’s Worldwide Developers Conference will be available with the latest operating system for the company’s devices and were also demonstrated at the event.

Apple uses the event at its headquarters in Cupertino, California, every year to unveil updates to its own apps and operating systems and show developers new tools they can use in their apps.

The redesigned Siri will have more control and will be able to do things that have proven difficult in the past because the assistant had to understand the user’s exact intentions and how the app works.

As part of Apple’s collaboration with the Microsoft-backed startup, Siri will also draw on ChatGPT’s expertise and seek users’ permission before querying the OpenAI service – a privacy feature that Apple has emphasized.

But the connection immediately raised questions about data protection.

Tesla CEO Elon Musk said he would immediately ban Apple devices in his companies if the iPhone maker integrated the startup’s technology at the operating system level.

The ChatGPT integration will be available later this year and more AI features will follow, Apple said, adding that the chatbot is free to use and that user information will not be logged.

Later Monday, Apple released a document detailing how its features, including those powered by OpenAI, would ensure the security of customer data. This includes having Apple’s servers handle more complex tasks as part of a new offering called Private Cloud Compute.

Apple also announced that it would add technology from other AI companies to its devices, following reports that the company was negotiating a possible collaboration with its long-time search partner Google.

To support the AI ​​features, Apple plans to use a combination of on-device processing and cloud computing. This means that the AI ​​features will only be available on the latest iPhones starting with the iPhone 15 Pro and on upcoming models.

The company, which has long opposed processing consumer data in the cloud for privacy reasons, said its approach offers greater privacy protection because it plans to use proprietary chips in its data centers that are equipped with security features.

Analysts have said that by using its own chips, Apple could also save on expensive Nvidia chips.

Apple said the new iOS 18, the software behind its flagship device, will make the iPhone home screen more customizable.

It will come with an app lock feature to help users protect sensitive information. Users can lock specific apps and have tighter control over data in the operating system.

The company is also making its Vision Pro mixed reality headset available in eight additional countries, including China and Japan. The new VisionOS 2 software for the headset uses machine learning to create natural depth photos and offers new gestures.

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