New AI Push May Save Apple

By Douglas A. McIntyre Updated May 13, 7:19AM EDT · Published May 12, 6:46AM EDT

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New AI Push May Save Apple — © Apple Inc.. Paris (CC BY 2.0) by sabin paul croce

Several media reports say robust AI features will be in the latest Apple Inc. (NASDAQ: AAPL | AAPL Price Prediction) operating system, which may be released as early as June. This could give Apple back its place as one of America’s premier mega tech companies, which it has started to lose as its rivals adopted AI products they launched months ago.

The AI applications will probably be part of Siri’s new version, a feature many iPhone owners use. According to The New York Times, “Apple plans to bill the improved Siri as more private than rival A.I. services because it will process requests on iPhones rather than remotely in data centers.” The software will almost certainly be licensed from OpenAI. Bloomberg reported the deal would be broader. “An OpenAI accord would let Apple offer a popular chatbot as part of a flurry of new AI features that it’s planning to announce next month.”

Apple’s new iPad launch did not mention any major AI features, which was a disappointment. It would have allowed Apple to announce during an important forum. The new iPad barely moved Apple’s troubled stock. This iPad release left some investors unimpressed.

Even if Apple announces a deal with OpenAI, investors may be skeptical. The question will remain about what features it will add to the new iPhone 16. As the Apple flagship, the latest iPhone, which will probably launch in September, must have compelling and unique AI applications. If it does not, it means the door is open for rivals like Samsung to beat it to market.

Apple’s stock is down 4% this year. Microsoft Corp. (NASDAQ: MSFT), viewed as the tech company AI leader, has posted a share run-up of 10% over the same period. That is a big gap to close. With an impressive AI deal, Apple may be able to do so.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.