The media reports that Apple is currently making serious efforts to introduce artificial intelligence into the iPhone.

The mentioned tech giant, which is based in Cupertino, California, has quietly made several acquisitions, hiring, and hardware updates that aim to add artificial intelligence to the next iteration of the specified smartphone, which is in fact the flagship of its product line.

The Pitchbook data indicates that Tim Cook’s company showed a higher level of activity compared to its competitors as part of the purchase of firms specializing in developments in the sphere of AI. Over the past seven years, the technology giant has become the owner of 21 brands of the corresponding functional orientation.

Daniel Ives of Wedbush Securities said in a media comment that Apple is currently preparing for some significant mergers and acquisitions. According to him, concluding a major deal related to the development of the technology giant as a player in the artificial intelligence industry in the current year is an expected action. Daniel Ives also noted that he would be shocked by the lack of such business agreements. In this context, the expert noted that there is currently a kind of arms race in the artificial intelligence industry, which Apple does not plan to ignore. Currently, the refusal to implement AI threatens any technology company, especially a large one, with what can be described as oblivion. Artificial intelligence has a large-scale transformational potential, which is why abandoning it reduces technological capabilities and provokes a drop in the level of competitiveness.

A Morgan Stanley research note notes that almost half of Apple’s job postings related to machine intelligence mention deep learning related to algorithms that control digital thinking systems capable of generating content.

Most likely, the tech giant is looking to integrate artificial intelligence first into the iPhone. This point of view is explained by the fact that the smartphone, as already mentioned above, is the flagship product of the brand, which is why using it to demonstrate the capabilities of integrated AI is the most logical solution. In addition, the use of advanced technology can increase the level of consumer demand for this development. This aspect is also very important, since in China, which is one of the most important markets for Apple, iPhone sales are deteriorating amid increased competition from local manufacturers and restrictions on applying brand’s devices in some firms and organizations in this country.

Tim Cook’s company demonstrates a somewhat moderate approach to artificial intelligence. In this case, it means the level of brand activity in the direction of introducing AI solutions compared to the intensity of similar efforts of its competitors, such as Google and Microsoft. But that doesn’t mean that the Cupertino-based tech giant has no interest in AI.

Apple CEO Tim Cook stated that artificial intelligence and machine learning are practically built into every product, but the company approaches this issue on a very thoughtful basis. During an earnings call last year, he noted that the firm is embracing AI and ML as fundamental technologies.

Also in 2023, the media reported on Apple’s intention to invest $1 billion in the introduction of artificial intelligence into the product line.

According to journalists, new machine intelligence functions will be integrated into the iPhone later in the current year and 2025. In this case, Apple’s actions are due to the expectation of a rapid increase in demand for the mentioned functions from the consumer community.

Microsoft in early January surpassed Tim Cook’s company as the world’s most valuable public firm as a result of its efforts in the sphere of artificial intelligence. However, this circumstance did not prevent the upgrade of Apple’s stock by Bank of America analysts. Probably, in this case, expectations related to the introduction of AI into the product line of Tim Cook’s company became a factor in influencing decision-making.

This month, Samsung unveiled its new Galaxy S series smartphone. The manufacturer very ambitiously described this development as the beginning of a new era of mobile artificial intelligence.

Counterpoint Research expects that over the next three years, more than 1 billion AI devices will be delivered to the global smartphone market.

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