Apple (NASDAQ:AAPL) introduced a series of AI-powered features and software updates at its 2025 Worldwide Developers Conference, focusing on practical enhancements rather than bold new breakthroughs. The highlight was “Apple Intelligence,” the company’s own AI framework, now opened to third-party developers. Apple also integrated OpenAI’s ChatGPT into its Image Playground app, assuring users their data won’t be shared without permission.
Apple’s approach emphasizes on-device processing, with a 3 billion parameter model designed for efficiency and privacy. This model, while less complex than cloud-based AI systems, supports features like live phone call translation and call screening. Developers will be able to access Apple’s on-device AI model but not its more advanced server-based tools.
In a move toward broader compatibility, Apple said its AI tools will work alongside third-party models like OpenAI’s and Microsoft’s (NASDAQ:MSFT) offerings. The tech giant also unveiled a major design overhaul across iOS, macOS, and other platforms, featuring a new “liquid glass” aesthetic and a simplified naming system based on years instead of version numbers.
Other updates include multitasking tools for iPad, a Siri redesign, and a Visual Intelligence app that identifies items on-screen and helps users find similar products online.
Despite the announcements, Apple shares closed 1.2% lower on Monday, reflecting market skepticism. Analysts noted the incremental nature of Apple’s AI rollout compared to more aggressive moves by competitors.
While Apple’s latest updates may lack the flash of generative AI rivals, they lay a privacy-focused foundation for future innovations. As Apple balances user trust, technical limitations, and rising competition, its AI strategy remains measured but deeply integrated into its ecosystem.