Apple plans to bring generative AI tools to its products, and will integrate ChatGPT into the iPhone and other devices. PA Wire
Apple plans to bring generative AI tools to its products, and will integrate ChatGPT into the iPhone and other devices. PA Wire
Apple plans to bring generative AI tools to its products, and will integrate ChatGPT into the iPhone and other devices. PA Wire
Apple plans to bring generative AI tools to its products, and will integrate ChatGPT into the iPhone and other devices. PA Wire


What's the big fuss about Apple integrating ChatGPT?


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June 13, 2024

After Apple announced plans to integrate generative artificial intelligence into its software and devices like the iPhone, one of the company’s original founders, Steve Wozniak, spoke for many observers when he told Bloomberg: “I have my own AI – actual intelligence.” He cautioned that the success of any such technology should be judged by the humans experiencing it rather than its marketed capabilities.

These comments from Mr Wozniak, who is no longer with the company he started with the late Steve Jobs, came amid a predictably mixed reaction following the launch of Apple Intelligence at the Worldwide Developers Conference in Cupertino, California this week. In particular, to the news that Apple will work with OpenAI to integrate its generative AI technology, ChatGPT, into virtual assistant Siri later this year.

Elon Musk, for example, came out swinging. “If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation,” Mr Musk said on his social media platform X. The Tesla chief executive said that visitors “will have to check their Apple devices at the door, where they will be stored in a Faraday cage”.

“Apple has no clue what’s actually going on once they hand your data over to OpenAI. They’re selling you down the river,” he wrote on X.

OpenAI CEO Sam Altman, left, talks with Apple senior vice president of services Eddy Cue during a conference in Cupertino, California this week. AFP
OpenAI CEO Sam Altman, left, talks with Apple senior vice president of services Eddy Cue during a conference in Cupertino, California this week. AFP
In terms of game-changing tech, we are in Apple Watch territory with Apple Intelligence rather than the iPod or iPhone

Mr Musk has a turbulent and well-documented history with OpenAI and its chief executive, Sam Altman, and having once backed the company, he has now started his own AI startup to compete. However, while it is useful politically to cry about security to hamstring rivals, security is indeed a major concern when it comes to the use of AI. TikTok is under attack on security grounds.

Blackberry and its maker, Rim, were brought low by similar accusations.

Ultimately, once a technology company has been called out as a security risk, it is a very difficult label to overcome. This is partly because most people assume that there is no smoke without fire. So, no one on the political spectrum wants to be publicly associated with the issue and the list of potential allies thins out quickly. Sometimes, though, a smokescreen is just that.

When it comes to AI, privacy might be the more apt consideration than security. Here, Apple’s track record is a little contradictory. It has, on the one hand, used its smartphone dominance to hold third parties at arm’s length, while at the same time convincing us that handing over all our data to Apple is totally up to us. During the same period, it has built up its own advertising strength as a result.

To an extent, Apple Intelligence expands its influence by also creating a narrative of user empowerment around AI.

The idea is that the AI on your iPhone or laptop will use your own personal data, accessed from your devices to try to make your life easier, and do everyday tasks for you through what is called personal cloud technology, powered by the chip and hardware in your hands.

Tesla CEO Elon Musk has criticised the partnership between OpenAI and Apple, saying it will pose a threat to data security. AFP
Tesla CEO Elon Musk has criticised the partnership between OpenAI and Apple, saying it will pose a threat to data security. AFP

In addition, you will have the choice to access ChatGPT directly through Apple’s software. Right now, if you use any of the models on the market, such as ChatGPT or Google’s Gemini, they access the large trove of global information available on their cloud network infrastructure, and your requests and prompts go there too.

Part of the promise is that Apple Intelligence will be far quicker and much more personalised as a result of its closer proximity. Mr Wozniak said he was impressed with the demos on show at the conference, but he added that the real test will come when users are able to try it out themselves in more mundane circumstances.

Taking a step back, however, no matter how good it proves to be, this is not a ground-breaking moment for AI technology or society at large.

First, the AI-powered features that will be on offer on Apple devices, from call transcription to email summaries to an upgraded Siri, are already out there. Using AI now, at its current capabilities, is actually really helpful but in limited situations. It is only a matter of time before we find it irreplaceable in our lives – like our phones have become – but we are some way away from that happening.

The idea of having Apple Intelligence on your phone sounds like having the equivalent of a young intern in the office, desperate to impress by offering to do things for you, that you know in the end will only make more work for you, but you feel bad if you don’t let them do it.

That’s a harsh judgment, no doubt, and I have nothing against interns in general. But in terms of game-changing tech, we are in Apple Watch territory with Apple Intelligence rather than the iPod or iPhone.

The launch also tells us more about the maturity of the smart mobile device market than anything else, with the pace of the growth of sales slowing since the Covid-19 pandemic. The push to integrate AI into mobile devices by their makers is as much about creating fresh momentum for revenue as anything else.

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Castle in the Sky (1986)

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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LA LIGA FIXTURES

Saturday  (UAE kick-off times)

Leganes v Getafe (12am)​​​​​​​​​​​​​​

Levante v Alaves (4pm)

Real Madrid v Sevilla (7pm)

Osasuna v Valladolid (9.30pm)

Sunday

Eibar v Atletico Madrid (12am)

Mallorca v Valencia (3pm)

Real Betis v Real Sociedad (5pm)

Villarreal v Espanyol (7pm)

Athletic Bilbao v Celta Vigo (9.30pm)

Monday

Barcelona v Granada (12am)

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Event info: The tournament in Kuwait is the first phase of the qualifying process for sides from Asia for the 2020 World T20 in Australia. The UAE must finish within the top three teams out of the six at the competition to advance to the Asia regional finals. Success at regional finals would mean progression to the World T20 Qualifier.

Teams: UAE, Bahrain, Saudi Arabia, Kuwait, Maldives, Qatar

Friday fixtures: 9.30am (UAE time) - Kuwait v Maldives, Qatar v UAE; 3pm - Saudi Arabia v Bahrain

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Updated: June 14, 2024, 4:49 AM