OpenAI could be the big winner of the latest Apple Intelligence genAI updates

The news: Apple rolled out its iOS 18.2 software update Wednesday, bringing anticipated generative AI (genAI) updates—including Visual Intelligence, Image Playground, Genmoji, and ChatGPT integration—to Apple Intelligence-compatible devices.

The latest AI-focused update comes to iPhones in time for the holiday shopping season, Apple’s most profitable time of year. 

Banking on AI: Apple Intelligence is limited to iPhone 15 Pro and iPhone 16 models and recent iPads and Macs, so this is a big update for a small subset of users. Are the AI features enough to push holiday adoption numbers? Let’s break them down.

• Visual Intelligence lets users instantly learn about places or objects by aiming their iPhone cameras to enable Google Search or ChatGPT results.
• ChatGPT is accessible from Siri or Writing Tools in Notes or Mail apps.
• Image Playground allows users to turn concepts, descriptions, and people from their photo library into creative images in various styles.
• Genmoji creates custom emojis and is synced across Apple devices through iCloud.

AI user requests are anonymous and won’t be used to train OpenAI’s models. ChatGPT accounts are not required. 

ChatGPT’s mobile moment: The latest Apple Intelligence updates put ChatGPT in the hands of more users, not just as a mobile app, but as key functionality deeply entwined with smartphone features. 

• OpenAI’s partnership with Apple, which puts genAI in the hands of an established user base, has the potential to make AI wearables seem obsolete.
• There’s no need to rush ChatGPT-specific hardware as long as it remains valuable to Apple users.
• The limited device compatibility for Apple Intelligence may benefit Apple and OpenAI by allowing time to scale and ensure fast, reliable service.

Our take: 63% of US adults say AI features on smartphones will save them time, per YouGov, indicating that the timing is right for on-device genAI. Expect Google to match these features with Android and Gemini releases as AI competition ramps up in mobile.

This article is part of EMARKETER’s client-only subscription Briefings—daily newsletters authored by industry analysts who are experts in marketing, advertising, media, and tech trends. To help you finish 2024 strong, and start 2025 off on the right foot, articles like this one—delivering the latest news and insights—are completely free through January 31, 2025. If you want to learn how to get insights like these delivered to your inbox every day, and get access to our data-driven forecasts, reports, and industry benchmarks, schedule a demo with our sales team.