We’re still in the early stages of the Artificial Intelligence (AI) Era.
But the purveyors of AI tech are already planting their flags … pursuing “mind share” in an effort to “brand” their offerings.
I mean, you’ve got OpenAI’s ChatGPT, Palantir Technologies’ AIP, IBM Corp.’s Watson and Microsoft’s Copilot.
There’s also Apple Inc.’s Apple Intelligence.
There are also “types” or categories of AI — like generative AI, machine learning, natural language processing and more.
So I’m going to toss my hat in the ring here — with an AI category descriptor that’s true to my belief in making things super-simple to understand … and that also captures an important slice of this emerging market.
I’m calling it “Everyday AI.”
You heard that term here first … and it’s highly relevant to Apple’s AI strategy — which was a part of its annual iPhone event, held last Monday at the company’s Cupertino headquarters. Apple hosts this hardware event every September. But this year’s event — nicknamed “Glowtime” — was special: It followed the Apple Worldwide Developer Conference (WWDC), held back in June, which analysts and investors seemed to feel was a referendum on Apple’s AI strategy.
While the WWDC was software-focused, and “Glowtime” is hardware, it’s crucial for investors to stitch the two together in a way that provides a full picture of Apple’s prospects.
To get the real lowdown on the iPhone event, I turned to my good friend David “OG” Zeiler, an expert on Apple, Big Tech and crypto — who’s also a fellow Substacker.
In detailing the newest Apple products — which included Airpods with intriguing health features – Dave described an underlying AI strategy that really fits my characterization of “Everyday AI.” In short, the iDevice King is rolling out its AI technology incrementally — by getting Apple Intelligence into consumers’ hands a little at a time … and in ways that make it useful in the near term … and essential long term.
As we got ready for our interview, Dave shared this “take” on Apple Intelligence.
“You know Bill, I was reading a story about a lady who got the ‘beta’ version of the new iOS 18 iPhone operating system, and was testing out its AI features, including the writing-assistance tools … and she was like: ‘Well, I’m a professional writer … how much am I really going to need help writing and communicating with my co-workers?’” Dave told me. “But she tried those tools – put them to use – and found that she was actually getting better feedback and seeing richer interaction with those co-workers. She found, like lots of folks do, that when you’re writing a memo, or penning an email, that folks take what you say the ‘wrong way’ because they perceive a ‘tone’ that you didn’t intend … and may not really be there. And I think we’ve all had that experience. She found that Apple’s AI was taking that out of her writing … and out of her messages … and that she was actually benefiting – and she could tell that from the reactions of her co-workers … and that she was getting better feedback than before … when she wasn’t using it. And I just have to think this is the kind of very practical, day-to-day benefit that Apple Intelligence can deliver."
This incremental AI rollout – which begins by getting this “Everyday AI” into customers’ hands – is super shrewd because it plays to Apple’s strengths. Remember, unlike other AI purveyors, Apple controls its own “ecosystem” that’s brought to life by its interconnected iPhones, iPads, Mac PCs, Apple Watches and more. So it has a captive audience for its AI offerings.
And it makes sense to start with “stuff” that won’t overwhelm its consumers – instead using its hardware offerings as the magnet that gradually gets them into the habit of using AI.
Dave sees it that way, too.
“Again, Bill, going to that practicality I was talking about …the stuff I believe we’ll be seeing in this initial ‘batch’ of AI tools that work with this new operating system … might be the summarization of emails, text messages or other documents,” Dave said. “Heck, Bill, we were both reporters … and I know you’re partial to texting … so you sometimes end up with lots of ‘stuff’ to sift through. What about being able to get an AI summary of all those things … that prioritizes them in a way that makes it all useful to you? I mean … you get all sorts of calls, messages, and even news alerts on storylines or stocks that you guys follow on your phones. And what this will do is prioritize them in a way that, first, saves you time, but (also) makes sure you don’t miss something important. You have a wife, Bill, and a son … and it will learn to put those first – instead of just getting a general flow. It’ll learn your habits … recognize what matters most … who you interact with most … and will be able to tell which ones you’re most likely to want to see ahead of all the others. To me, that’s just an incredibly useful thing.”
Those are the types of things Dave expects we’ll see with this initial product rollout.
That’s “Everyday AI.”
As I said, these comments came from our “walkup chat” — the term I use to describe our planning sessions. And I always dig my talks with Dave. (True confession: I even called him after our interview, and we talked for an additional hour as I drove home).
From our full chat, I wanted to share a specific piece, which includes the near-term … and long-term … catalysts for Apple’s stock.
See you next time;