On Monday, Apple unveiled its long-anticipated AI strategy, introducing “Apple Intelligence” technology across its suite of apps, including Siri, and partnering with OpenAI to integrate ChatGPT into its devices. These announcements aim to reassure investors that Apple remains competitive in the AI landscape, despite lagging behind Microsoft in recent developments.

However, the news caused Apple’s shares to dip 2% in afternoon trading, as investors anticipated more extensive AI announcements. This year, Apple’s stock has underperformed compared to other Big Tech companies.

The AI advancements were revealed at the Worldwide Developers Conference and will be included in the latest operating system for Apple’s devices, showcased at the event. New features will enable users to summarize text and create personalized content, such as custom animations for special occasions.

Apple also announced that ChatGPT integration would be available later this year, with additional AI features to follow. Notably, the chatbot will be accessible for free, and users’ information will remain confidential.

Apple executive Craig Federighi, introducing the ChatGPT integration, stated, “We want you to be able to use these external models without having to jump between different tools.”

The company also upgraded Siri with generative AI technology, empowering the previously lagging voice assistant to manage individual app features. Now, Siri can delete emails and edit pictures for iPhone users—a capability that had been challenging in the past due to the assistant’s need to understand the user’s exact intentions and how each app functions.

Additionally, Siri will leverage ChatGPT’s expertise, seeking user permission before querying the OpenAI service.

Emphasizing its commitment to user data safety, Apple highlighted that it has designed its AI with privacy “at the core.” The company will utilize a combination of on-device processing and cloud computing to power these AI features.

Apple plans to integrate its own chips to enhance AI features on its devices. Additionally, it introduced “Private Cloud Compute,” which allows AI to leverage larger server-based models while safeguarding user privacy.

While competitors focus on enterprise solutions, Apple aims to differentiate itself by making AI technology accessible and relevant to its over 1 billion users, many of whom are not tech-savvy.

With iOS 18, the software behind its flagship device, Apple is making the iPhone home screen more customizable and improving its in-house apps. The new software will also include a “lock an app” feature, enabling users to secure sensitive information by locking specific apps and maintaining tighter data control within the OS.

Furthermore, Apple announced enhancements to its email client, which will start grouping messages into primary, transaction, promotion, and other specific folders, such as airline communications, later this year. These high-level categorizations resemble a longstanding feature in Google’s Gmail.

The company is expanding the availability of its mixed-reality headset, Vision Pro, to eight additional countries, including China and Japan. The latest VisionOS 2 software for the headset will leverage machine learning to create natural depth photos and introduce new gestures.

Each year, Apple uses its developer conference at its Cupertino, California, headquarters to unveil updates to its apps and operating systems and to present developers with new tools for their applications.

For years, Apple has quietly harnessed AI to enhance features on its devices, such as the crash and fall detection on its watches. However, unlike Microsoft, which has prominently showcased its AI advancements through its collaboration with OpenAI, Apple has been reticent to highlight how AI enhances its products’ functionality.

In January, Microsoft surpassed Apple to become the world’s largest company by market capitalization. Recently, AI chip giant Nvidia briefly overtook Apple as the second-most valuable company, signaling to some investors a significant shift in the tech landscape.