Apple to Break AI Silence at Developers Conference

Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File
Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File
TT

Apple to Break AI Silence at Developers Conference

Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File
Apple chief executive Tim Cook has called generative AI a 'key opportunity' across the iPhone maker's line of products. Dimitrios Kambouris / GETTY IMAGES NORTH AMERICA/AFP/File

Apple on Monday will attempt to persuade doubters on its AI strategy after rivals raced ahead in adopting artificial intelligence.
AI and perhaps even a partnership with ChatGPT-maker OpenAI will likely be a driving theme at the kickoff of Apple's WWDC developers' conference in Silicon Valley, according to analysts.
The conference is Apple's annual rendezvous for developers who create apps for iPads, Macs and iPhones -- and CEO Tim Cook will work hard to convince his audience that the company is a major AI player, said AFP.
While Apple has been quietly including AI features in its hardware for years, it has yet to solidify its overall strategy or embrace ChatGPT-style generative AI that took the world by storm in late 2022.
Rivals Microsoft and Google have meanwhile rolled out products in rapid-fire succession, propelling Microsoft and the AI chipmaker Nvidia to surpass Apple as the world's biggest companies when measured by stock price.
Apple's share price has been on a roller coaster ride since the spark of the AI frenzy, but believers see Monday's announcements as the start of a new chapter for the iPhone maker.
While its "silence has been deafening, that will all change on June 10, when Apple crosses the AI Rubicon," predicted Dipanjan Chatterjee, an analyst at research firm Forrester.
At the heart of the announcements will almost certainly be an update to Apple's iPhone operating system, iOS 18, which is expected to see AI given a central role.
Silicon Valley is convinced that generative AI will profoundly change how users interact with smartphones and computers, but the technology is still in its early stages and the benefits not entirely clear for now.
Also heavily rumored is a "flagship" OpenAI partnership that could involve an exclusive chatbot for iPhone owners and supercharge the much-derided Siri.
All these announcements will set the stage for an expected iPhone 16 release later in the year and open the door to "a renaissance of growth" for the company, said Wedbush Securities senior analyst Daniel Ives.
Since Apple makes most of its money from selling iPhones, the AI will likely focus on its devices and services working more seamlessly together, said Creative Strategies analyst Carolina Milanesi.
"At the end of the day for Apple, it is about getting people to upgrade their iPhone," Milanesi said. "We will see if Apple gives them a compelling reason to do that."
'Litmus test'
Announcements at WWDC will be a "litmus test" for Apple's ability to integrate ChatGPT-like generative AI into all its devices and services, said Emarketer senior analyst Gadjo Sevilla.
"Any misstep by Apple at this juncture could see it lose its place as a technology leader, especially as it is now sandwiched between two AI giants with actual products and release roadmaps that go well into the next two years."
CEO Cook already foreshadowed his commitment to AI by putting more powerful and AI-ready chips on iPad and MacBook releases earlier this year.
But the big challenge for Apple is how to infuse the technology into its products without weakening its heavily promoted user privacy and security, according to analysts.
ChatGPT-style AI voraciously feeds off data and Apple will be at pains to fight the AI race while living up to its traditional position on safeguarding data privacy.
"Being too controlling of an AI ecosystem could cause Apple to lose ground or fall behind while other companies are moving fast and breaking things," Sevilla said.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
TT

Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.