Apple’s Surprise Update Just Made iPhone More Like Android

The latest smartphone news making waves this week involves Apple allegedly engaging in discussions with Google regarding a significant partnership to incorporate Gemini into the iPhone. Bloomberg, the source that first reported this development, describes it as a groundbreaking agreement that would have a profound impact on the AI industry.

It is important to note that this news is still uncertain and unverified, as it is based on anonymous sources who wish to remain unidentified due to the confidential nature of the discussions. Nevertheless, this update has ignited curiosity within the tech community, prompting speculation about the potential implications of such a collaboration.

In actuality, the outcome of whether this is accomplished or not is inconsequential. What truly matters is that something has changed on Apple's part, and this is the genuine update for iPhone users. When it comes to the realm of generative AI outside of Apple's ecosystem, Google holds dominance with Gemini (formerly known as Bard), while OpenAI with ChatGPT, which is supported by Microsoft, also plays a significant role. It is therefore not surprising that "Apple has also recently engaged in discussions with OpenAI and has contemplated utilizing its model."

Apple has hinted that its upcoming iOS 18, scheduled to be released in the fall as usual, will be the most substantial update to date—cue the enthusiastic music and applause. This update primarily revolves around on-device AI integration on the iPhone. According to reports from a few weeks ago, Apple has been conducting tests on its own on-device large language models in comparison to OpenAI and other competitors. The aim is to ensure that Apple's offering is on par with cloud-based alternatives while maintaining its competitive advantage.

However, the indication that Apple could potentially reach an agreement with Google or OpenAI implies that either Apple's progress is not as advanced as previously believed, or, more likely, there are inherent constraints for on-device generative AI compared to what can be achieved in the cloud.

This implies that Apple might consider dividing its AI services, with privacy-focused features being handled on the device side, potentially utilizing Gemini Nano. On the other hand, more resource-intensive tasks like writing or analyzing lengthy documents, or conducting in-depth research, would be performed in the cloud.

Samsung has shifted its marketing focus to Galaxy AI this year, positioning itself to compete with Google and iPhone in the rapidly growing AI handset market. While Apple initially seemed to take a different approach with on-device AI, Samsung's hybrid device/cloud model aims to enhance security and privacy in data-intensive mobile experiences. By combining on-device and cloud-based AI, Samsung offers users greater control over their data while ensuring seamless usability. Recent reports suggest that Apple may be moving towards a similar hybrid approach, indicating a convergence in strategies between the two tech giants. The challenge for Samsung has always been balancing its own AI capabilities with those of Google, but it appears that Apple may be following a similar path, further closing the gap between iPhone and Android devices.

With minimal variations in performance between the top-tier flagship devices from Apple and Samsung, which dominate the global market for premium smartphones, the increasing importance of AI as a sales driver brings the two ecosystems closer than ever before. As Samsung adopts a more Apple-like approach and Apple does the same, the convergence between the two companies is evident.

However, Apple faces a significant challenge, particularly in the realm of AI and privacy. The battle for privacy in the era of AI is intensifying, with reports emerging that generative AI prompts can be vulnerable to hacking. It is not a matter of if, but when major breaches will occur.

Apple has been vocal about its commitment to user privacy and security, taking a different path from other companies that monetize personal information stored in the cloud. In contrast, Apple prioritizes the security and privacy of its users. This stance is often seen as a direct criticism of Google and its cloud offerings, which are perceived to be less secure than Apple's own.

Furthermore, Apple has expressed concerns about proposed surveillance legislation in Australia, warning against the negative implications of mass surveillance tools on freedom of expression, opinion, and democracy as a whole. The potential for government-mandated monitoring raises serious risks to legitimate associational, expressive, political, and economic activities.

These concerns have significant implications for the use of cloud-based AI compared to on-device AI. Anything sent to AI in the cloud inherently lacks end-to-end encryption, making it susceptible to storage, retrieval, legislation, and law enforcement. This issue has already been observed with Google Messages serving as a user interface for Gemini, albeit with a warning that it operates outside the platform's usual full encryption.

The distinction between on-device and cloud AI, and how Apple's approach differs from its competitors, is becoming increasingly critical. While current search arrangements already favor Google as the default search engine across both iPhone and Android devices, the unique nature of AI necessitates a more nuanced understanding. The boundaries between these two approaches will continue to blur as AI technology evolves.