ChatGPT threat vs. just a demo: analysts argue about Apple's AI prospects

Apple's presentation caused mixed reactions on Wall Street. Analysts are divided in their opinions: some of them call the company's modernized Siri and fresh AI functionality a powerful stimulus for sales growth and a direct threat to competitors. Others point to the lack of revolutionary breakthroughs and severe limitations in the work of Siri AI, which will not be able to give personalized advice to users due to the closed data in third-party applications, writes Business Insider (BI).

Apple the day before in the framework of its annual conference for developers WWDC showed new options, but did not indicate a clear timeline for their release, because of which its shares went down right during the presentation, noted analyst Deepwater Asset Management Gene Munster. The iPhone maker's shares were losing 2.5% at the moment on June 8 and ended the day down 1.89%. At the premarket on June 9, Apple shares continued to decline - losing 0.4%.

- "Remember, this is just a demo for now," Deepwater Asset Management managing partner Gene Munster reminded us. - Two years ago, they [Apple] already made too many promises [regarding AI development] by showing demos. However, if they materialize what they showed today [an updated AI-powered Siri assistant], it will spur sales of Apple hardware," Munster believes. Siri AI, he estimates, will become available to users in mid-2027, not this fall as analysts previously expected.

The expert added that Apple's updated voice assistant goes beyond one-word queries and is able to refer to previous conversations. "The examples presented seemed to me 10 times better than using ChatGPT for personal tasks," Munster noted.

He also drew attention to updates to Apple's parental control features, which the company also revealed during the presentation. Among the updates: control of children's contacts and communication, blocking violent content and scenes of violence, flexible time limits and more (these tools will be part of the operating systems iOS 27, iPadOS 27 and macOS 27). Munster called this aggressive introduction of Apple's child safety tools a "smart move": such small functions tie parents more strongly to the company's ecosystem, the analyst believes.

- Apple has finally delivered on its promises of two years ago by presenting a robust AI strategy and announcing Siri AI, said Wedbush Securities analyst Dan Ives, known for his continued optimism about the tech sector, Wedbush Securities analyst Dan Ives said. His opinion is quoted by BI. "Overall, it was an impressive event that did not disappoint," he said. - [Outgoing CEO] Tim Cook and Apple finally revealed an AI strategy that, after years of promises, will open up real opportunities to monetize artificial intelligence in the Cupertino [Apple's California headquarters] consumer ecosystem," the analyst concluded.

- In contrast, Jefferies analysts led by Edison Lee called Apple's announcements "evolutionary rather than revolutionary." They pointed out that the new features are in line with expectations and are still under development. But much more importantly, the company doesn't have access to third-party app data, which is critical for smartphone AI developers, the experts pointed out. If Apple plans to offer "highly personalized AI capabilities through Siri, the lack of access to third-party app data will be a huge limiting factor," the analysts stressed. "The model itself is not the key to success, as even the most advanced AI model won't be able to provide smart advice if it doesn't have enough data from apps to connect the big picture," they noted.

- Apple is turning Siri into a central hub for complex interaction with AI, not just a set of disparate tools, says Ben Bajarin, CEO of consulting firm Creative Strategies. His opinion is cited by BI. According to him, personal context, understanding of what is happening on the screen, actions in applications, texting, search and visual intelligence will pass through one layer of the assistant, which will create a fundamentally different user experience.

- The Siri update could be bad news for third-party AI companies trying to build products for the mass market, warned Creative Strategies consumer technology analyst Max Weinbach. "If the new Siri and AI features turn out to be good, and Apple is able to provide them for free with every new device, all other AI developers should seriously fear for their future," BI quoted the expert as saying. He added that Siri AI essentially takes over everything that most consumers are now using ChatGPT and Gemini for, which puts a crimp in the ambitions of third-party AI startups in the consumer segment.

- NBC chief technology analyst Joanna Stern also applauded Apple's focus on parental controls, but emphasized that parents don't just want new buttons, but for those controls to actually work. "I would hope that there has been some serious internal upgrades here to ensure synchronization, reliability and stability between devices," Stern added.

- The presentation of new child safety features is a perfect example of gaining "strategic points" through a simple solution that improves the company's image against competitors, said Ernest Wong, head of research at Baskin Wealth Management. "This is an easy solution for Apple that will both attract children and teens to the company's ecosystem and also hit competitors (social networks)," BI quoted Wong as saying.

- Historically, Apple doesn't always end up first, but it usually becomes the best, said Maxim Group senior consumer Internet analyst Tom Forte. His opinion is quoted by CNBC. "That said, I do believe that it can be much harder for Apple to become the best in artificial intelligence than, for example, in the smartphone market. However, what I think we're seeing right now is that at the consumer level - as opposed to the enterprise level - a lot of business models are slow to develop. So I don't think it was critically harmful for Apple to take its time in the consumer market when it comes to AI-related applications," he told the channel.

At the conference, Apple confirmed the postponement of Siri AI release in Europe and China due to local regulatory disputes. This, according to Forte, may have a short-term impact on Apple's performance: the European market accounts for more than 20% of the corporation's sales, and the PRC - more than 15%. Due to regulatory restrictions in these regions, up to 40% of the company's global revenue will be cut off from the updated AI functionality for an indefinite period of time, which will slow down the monetization of the technology in key areas, the analyst added.

This article was AI-translated and verified by a human editor