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On Monday, Apple held its annual Worldwide Developers Conference keynote, where it showcased the next versions of the operating systems that power its devices, including iOS 27, macOS 27, and iPadOS 27. The thing is\u2014and I say this as an Apple fan\u2014unless you\u2019re a parent or really<\/em> care about artificial intelligence, the keynote was pretty meh.<\/p>\n After spending about 10 minutes discussing minor operating system tweaks and improvements, Apple dedicated the next 10 minutes to a single set of features\u2014new parental controls\u2014and then spent the next 40 minutes showing off its new artificial intelligence tools, including the new Siri AI. While the new AI tools were always going to be the main focus of the keynote, the announcements weren\u2019t anything we didn\u2019t already expect. This was Apple playing catch-up to the other AI giants, after all. <\/p>\n Still, one thing about the keynote did interest me, and it has nothing to do with what the new AI tools can do. If you paid careful attention, the keynote revealed three key insights into how Apple sees AI fitting into its business model and brand image.<\/p>\n Love AI or hate it, one thing is for sure: It costs companies a lot of money to run. If you\u2019re an AI-only company like OpenAI, that means you are still years away from achieving a meaningful profit. On the other hand, if you\u2019re an existing tech giant like Google, you can essentially eat the costs of running AI because you have other lucrative revenue streams to draw on.<\/p>\n In this way, Apple is a lot like Google: It\u2019s got plenty of revenue streams. Many pundits thought this meant that Apple would decide not to charge users, <\/strong>at all, for its latest AI advancements. But thanks to a brief comment an hour and seven minutes into the keynote by Apple’s software head, Craig Federighi, we know that\u2019s not the case.<\/p>\n Federighi revealed that Apple is indeed placing daily usage limits on its more advanced AI features, such as image generation, but users can extend those limits by subscribing to select iCloud+ plans. iCloud+, one of Apple\u2019s main subscription services, gives users more online storage and advanced privacy features. And the fact that Apple is now bundling increased AI usage with its subscriptions suggests that the company sees AI as a way to increase its services revenue.<\/p>\n Apple also clearly sees AI as a way to boost its hardware business. While many of the new Apple Intelligence and Siri AI features will run on Apple devices that currently support Apple Intelligence, Apple took time in the keynote to explain that in order to use all<\/em> the latest AI improvements, you\u2019ll need Apple devices no older than a few years.<\/p>\n Specifically, Apple noted that its new on-device AI models, which let users run AI locally on their phone, tablet, or laptop without an internet connection, will require the iPhone 17 Pro, iPhone Air, an iPad with an M4 chip or later, or a Mac with M3 or later (both of the latter with at least 12GB of RAM). Yes, even the iPhone 17 can\u2019t run all the AI features Apple has announced\u2014and that phone is only nine months old.<\/p>\n You\u2019ll also need those aforementioned devices in order to use other new AI features, such as improved dictation and Siri AI voice customization. And if you want to run the new Siri AI on your Apple Watch, you\u2019ll need a Series 9 or later.<\/p>\n Of course, there are legitimate hardware reasons for these requirements. The AI needs a device with enough RAM and CPU power to run the most advanced features. But there\u2019s almost no chance that Apple isn\u2019t counting on these AI limitations to spur hardware sales among customers who want to use Apple\u2019s latest AI to its fullest potential.<\/p>\n Most tech giants have the luxury of just drinking the Kool-Aid and claiming that AI is great, regardless of its destructive impact on the livelihoods of artists and creatives. But Apple isn\u2019t like most tech giants. <\/p>\n Throughout its 50 years, Apple has built much of its brand value around the idea that it creates tools that allow people to express themselves to their full potential\u2014and make a living doing it.<\/p>\n But that image doesn\u2019t really align with tools now able to create AI slop on every device the company sells. And the keynote made it obvious that Apple hasn\u2019t yet found a way to reconcile this incongruity.<\/p>\n At the one-hour mark, Apple showcases its upgraded slop machine app, Image Playground, highlighting how cool it is that it can now generate photorealistic images. But less than three minutes later, Apple proclaims that it \u201chas a deep respect for the craft of photography\u201d\u2014you know, the field that realistic AI slop risks destroying<\/a>. Therefore, Apple says, its new AI tools in the separate Photos app are designed to \u201crespect the original [photo] moment.\u201d<\/p>\n To me, this seems like Apple talking out of both sides of its mouth. The company doesn’t yet know how to square its AI slop tools with its creative brand image. You can\u2019t be shipping a slop-generating app on your devices while also saying you respect the craft of photography.<\/p>\n It will be interesting to see how Apple addresses this incongruity going forward, especially as the backlash against AI slop<\/a> only continues to grow.<\/p>\n \nAI will be a driver of services revenue<\/h2>\n
AI will be a reason to upgrade your devices (even if they aren\u2019t that old)<\/h2>\n
AI (slop tools) will challenge the company’s brand image<\/h2>\n