Just because Apple hasn’t announced its generative AI play that doesn’t mean it doesn’t exist. During the tech giant’s fourth quarter earnings call, CEO Tim Cook confirmed that Apple is investing “quite a bit” in the technology.
“In terms of generative AI, obviously we have work going on. I’m not going to get into details about what it is because, as you know, we really don’t do that,” Cook said, referencing how notoriously secretive the company is about its upcoming products and services. “But you can bet that we’re investing quite a bit.”
He added: “We view AI and machine learning as fundamental technologies and they are integral to virtually every product we ship.”
All the major tech companies have been touting their AI initiatives in their earnings calls of the past couple of weeks. In their post-earnings calls, Alphabet, Meta and Amazon all underscored the depth of the leap they were taking into the technology, in some cases framing the entirety of their business operations through the lens of myriad AI initiatives, which have become front and center in future spending plans.
While Apple was less specific than tech competitors on Thursday, Cook noted that the company plans to handle its AI “responsibly” and that consumers and shareholders “will see product advancements over time” that incorporate the technology.
Generative AI is the branch of artificial intelligence that’s gained the most attention over the last year. The technology uses models and/or algorithms to create brand-new output. Well known AI platforms such as ChatGPT and Midjourney fall into this category.
Cook also noted that if “you zoom out,” AI and machine learning have been incorporated into “virtually every product that we show.”
“We view AI and machine learning as fundamental technologies,” Cook said, noting that features such as the Personal Voice and Live Voicemail options released on the recently shipped iOS 17 were created by AI and machine learning. Additionally, fall detection, crash detection and the ECG on the Apple Watch were created in part thanks to AI.
“We don’t label them as such,” Cook explained. “We labeled them as to what their consumer benefit is. But the the fundamental technology behind it is AI and machine learning.”
Apple appears to be taking a more reticent position than its competitors in detailing its investment in AI, likely because of consumer fears around the technology.
During the fourth quarter earnings call, Cook and Apple CFO Luca Maestri were also asked why research and development spending has been up recently. When asked about the main components that led to this increase, investments in Vision Pro, AI and machine learning were all mentioned.
“Some of the investments we are making in R-and-D are drivers for gross-margin advancement,” Maestri added. “It’s important to think about it that way.”
Apple is currently the last remaining major tech company without a publicly known generative AI product. In June, the six biggest companies in the space — Amazon, Anthropic, Google, Inflection, Meta, Microsoft and OpenAI — voluntarily committed to following guidelines set in place by the Biden administration. On Monday, President Biden issued a new executive order on artificial intelligence that will require safety and security measures for the technology while calling for protections on customer privacy.
