Apple is close to finalising an agreement with OpenAI, the creator of ChatGPT, just before the launch of iOS 18 for the iPhone. This deal will enable Apple to utilise OpenAI’s AI technology on the iPhone, as stated in a recent Bloomberg report from sources familiar with the situation. It was previously understood that Apple was in discussions with both Google and OpenAI to incorporate chatbot capabilities into iOS 18.
Following this recent update, it appears more probable that Apple will collaborate with an external entity for certain AI features on the iOS 18 iPhone. How might this impact the security, privacy, and functionality of your iPhone?
Privacy and security are central to Apple’s AI approach. As emphasised in one of Apple’s advertisements, “Privacy. That’s an iPhone.”
Apple’s AI features in iOS 18 prioritise privacy by processing data on the device itself, enhancing security. This approach ensures that your data remains on your iPhone rather than being transferred to external servers. Apple is developing powerful chips like the M4 chip in the latest iPads to support AI tools, a trend that will continue with the upcoming iPhone 16 release.
Apple is also incorporating its high-quality chips into servers, giving it more control over cloud-based AI capabilities. This shift enables Apple to maintain data privacy even when the data is off the device for certain AI functions.
Moreover, the collaboration with OpenAI could enable Apple to introduce an iPhone chatbot, offering users a desirable new feature while shifting the data responsibility to OpenAI.
The decision to partner with OpenAI mirrors Apple’s long-standing collaboration with Google for Search, a partnership valued at around $18 billion, showcasing Apple’s strategic approach to enhancing its AI offerings.
According to Bloomberg’s Mark Gurman, Apple’s AI strategy includes:
A) On-device LLM (developed internally)
B) Cloud-based LLM (developed internally)
C) Chatbot “(OpenAI confirmed, the potential involvement of Google).
Apple is not creating its own chatbot but recognizes the market demand for it, so it is seeking external sources for this feature. This strategy mirrors its approach to search functionalities.
Apple’s approach prioritizes security and privacy, yet on-device processing may pose challenges. Older iPhones may face limitations in functionality. As Forbes’ Zak Doffman highlights, the device’s capability determines the extent to which AI features can be utilised locally.
Hence, there is likely to be an “iOS requirement for the iPhone 16” to enable comprehensive on-device processing. According to him, newer hardware can be tailored for AI, unlike older devices with general processing capabilities that cannot achieve similar results.
The battle over on-device processing and data control will be a significant focus when Apple introduces iOS 18 at its upcoming Worldwide Developers Conference. The ongoing dilemma between privacy and security on one side and functionality on the other is expected to persist as AI features become more prevalent on smartphones.
The rumored OpenAI agreement gives Apple added capabilities for the iPhone upon the release of iOS 18 in the upcoming Fall. If the partnership materializes, it also permits Apple to shift the responsibility for data to OpenAI, safeguarding its reputation for privacy and security.
