Apple is preparing to launch “Apple Intelligence,” a sweeping artificial intelligence (AI) initiative that experts say could rewrite the rules of digital commerce.
The tech giant's efforts come as Silicon Valley is engaged in an AI arms race — Google is integrating AI into its search engine, Microsoft is embedding it in Office, and Meta is implementing it across its social media platforms — but Apple has been conspicuously quiet on the AI front thus far.
“Apple's AI integration could bring us closer to the concept of a true AI assistant that's portable, convenient, and seamlessly integrated into everyday life,” Ryan Waite, vice president of public relations at Think Big, told PYMNTS. “We've seen attempts at this with devices like Rabbit, but they haven't fully realized their promise.”
At the core of Apple Intelligence is a suite of AI-powered features designed to enhance the capabilities of iOS. At its center is a significantly upgraded version of Siri, powered by a partnership with OpenAI, the creators of ChatGPT. The collaboration is expected to improve Siri's natural language processing capabilities, enabling more complex, context-aware interactions.
The first version of iOS 18 will debut with Apple's iPhone 16 models in September, but the full range of AI features will arrive in the iOS 18.1 update, scheduled for mid-to-late October. Initial features include an AI-enhanced writing tool, context-aware reply suggestions in Messages, email summarization, and real-time phone call transcription.
Even more advanced features are coming soon: Image Playground, an AI-powered image creation and editing tool, is scheduled to be released in early 2025. This will be accompanied by Genmoji, a feature that will allow users to create custom emojis using AI technology.
“Apple's AI in the iPhone has the potential to revolutionize shopping in the same way that Amazon transformed book buying,” Waite said. “The key transformation will be reducing friction in the purchasing process and providing a hyper-personalized experience.”
iPhone AI for Mobile Commerce
Imagine walking into a store and your iPhone recognizing your location, pulling your preferred sizes, matching them with current inventory, and suggesting products you might like — all before you even hit the first shelf. This level of personalization has the potential to revolutionize the retail industry.
But it's not just about shopping: Apple Pay, the company's mobile wallet, is also set to get an AI makeover. “There's a huge opportunity for Apple to take its mobile wallet to the next level by transforming consumer spending behavior and integrating mobile wallet into its core AI strategy,” Daryl Cumming, director of product management at payment solutions company NMI, told PYMNTS. “OpenAI is just the beginning.”
Integrating AI into Apple Pay could enable a more intuitive and contextual financial experience. Potential features could include AI-powered budgeting advice, real-time spending analysis, and even predictive purchasing based on user habits.
“In an Apple world, we expect to see greater consumer choice spill over into more personalization of App Store purchases and commerce,” Cumming said.
But before this AI utopia can become a reality, Apple must address a major challenge: privacy. The company has long positioned itself as the guardian of user data, and AI requires vast amounts of personal information to function effectively, creating tensions between AI capabilities and privacy protections.
“The data collected to power a personalized shopping experience will be extremely valuable not only to Apple, but to any company interested in selling products and services,” Waite warned.
Apple's proposed solutions include processing many AI tasks on-device and introducing new visual cues to show when Siri is active. Whether these measures are enough to maintain user trust remains to be seen.
New Revenue Potential
The stakes are high: If Apple can navigate these challenges successfully, it could unlock a big new revenue stream.
“We expect to see increased partnerships and digital marketing as Apple prepares to bring new AI innovations to the tech industry,” Cummings said. “Through its existing network and App Store, Apple is uniquely positioned to enable the new world of AI-driven commerce.”
This push towards AI could also upend traditional retail and marketing strategies: personalized AI recommendations could replace traditional advertising methods.
“This is a shift in e-commerce from push to pull,” Waite says. “Instead of brands pushing information to consumers, consumers will pull exactly what they want, when they want it, through an AI-powered interface.”
The impact will go beyond just Apple's bottom line. The retail industry could be fundamentally transformed, with AI-driven personalization rendering some traditional marketing techniques obsolete. Brands and retailers must adapt to this new paradigm or risk being left behind.
As Apple prepares to roll out these features, the mobile commerce landscape appears poised for a major shift. The success of Apple Intelligence will depend on a delicate balance of technical prowess, user trust, and ethical considerations.
“It's too early to tell, but change is definitely happening,” Cummings said. “It's going to snowball. You're going to see a lot of excitement across the tech industry in the coming months as big companies like Apple commit to making generative AI part of their core growth strategies.”
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Read more: advertising, AI, Apple, Apple Intelligence, artificial intelligence, connected economy, Darryl Cumming, digital transformation, e-commerce, trending news, iPhone, marketing, mobile commerce, mobile wallets, news, product discovery, PYMNTS News, retail, Ryan Waite
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