The Sober Approach to AI: Apple’s Focus on User Experience

Artificial intelligence (AI) has become a buzzword in the technology industry, with companies like Alphabet, Microsoft, and Meta constantly talking about its potential. However, Apple takes a different approach, focusing on user-friendly experiences rather than hyping up AI.

During recent earnings calls, Alphabet CEO Sundar Pichai mentioned “AI” 66 times, Microsoft CEO Satya Nadella mentioned it 47 times, and Meta CEO Mark Zuckerberg said it 42 times. In contrast, Apple CEO Tim Cook only mentioned “AI” twice during an earnings call and never mentioned it during a software launch event. Instead, Apple executives prefer the term “machine learning” and emphasize how software benefits users, such as organizing photos or improving typing.

AI’s Uncertain Future for Mega-Cap Companies

While companies like Microsoft, Google, and Meta are excited about AI, it remains unclear how it will impact their core products and when it will start generating significant revenue. Google plans to revamp its search engine using an AI model called Search Generative Experience, Microsoft introduced a subscription service called “Copilot” that integrates AI-generated text into applications, and Meta invested in its own large language model for chatbots and online ads.

Meanwhile, Apple continues to rely on iPhone sales for the majority of its revenue. The company’s AI strategy revolves around integrating it into the background of its products without making a big fuss about it. Apple believes that AI should be a core underlying component rather than the sole focus of its technology.

Rollout Challenges for AI Products

During earnings calls, Microsoft and Google indicated that the rollout of their AI products might take time. Microsoft CFO Amy Hood mentioned a “gradual” rollout of the Copilot subscription, while Google CEO Sundar Pichai admitted that it was still “early days” for their AI-powered search. Meta’s CEO Mark Zuckerberg expressed uncertainty about the adoption of new AI features.

The slow deployment of revenue-generating AI products is important because it fits the pattern of the “hype cycle” for new technologies. Initially, there is a peak of inflated expectations, followed by a trough of disillusionment before maturity. While AI is currently booming, there is a risk of disappointment if everyday consumer applications don’t gain traction.

Apple’s Pragmatic AI Approach

While other companies see AI as a game-changer, Apple views it as a tool to enhance user experiences rather than a standalone feature. Although Apple has made significant investments in AI development, it prefers to wait until products are ready for the market before discussing them. Analysts will likely question Apple about its AI plans during the upcoming earnings call, but the company is expected to continue its focus on products and features.