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Apple has made a strategic move into the world of AI with Apple Intelligence, integrating on-device models and ChatGPT capabilities into its ecosystem. But as Apple continues to blur the lines between its own offerings and third-party apps, developers in certain fields may start feeling the pressure.

In this article, we’ll break down the core features of Apple Intelligence and examine how it could reshape the app landscape. Let’s start.

What is Apple Intelligence?

Apple Intelligence is an AI platform created by Apple Inc. It integrates on-device generative and diffusion models with ChatGPT capabilities. Apple Intelligence deeply understands users’ personal context and is fully integrated into various system features and apps.

Key features

Here’s a quick summary of the most critical functionality introduced by Apple Intelligence:

Writing Tools. Users can rewrite, proofread, and summarize text across Mail, Notes, Safari, Pages, Keynote, and third-party apps. They can also adjust the tone to be friendly, professional, or concise with a single click. Additionally, it can automatically generate a bulleted list of key points from the text. These writing tools integrate with ChatGPT.

Audio Transcription. Users can also record, transcribe, and summarize audio in the Notes and Phone apps. Smart Reply in Mail. This feature offers suggested responses based on the content of the incoming message. Users can quickly select the best options, allowing them to send a response quicker.
Image Playground. It is a standalone app, but it is available across Messages, Notes, Freeform, and Keynote. It allows users to generate custom images based on their ideas or photos from the library. Image Playground enables the design of personalized Genmoji using descriptions or photos.

Image Wand, Custom Memory Movie, and improved Siri – Apple Intelligence introduces tools to boost user productivity and creativity across Apple’s ecosystem.

The Impact of Apple Intelligence on the Startup Landscape

Apple’s entry into the AI field could intensify competition for app developers, especially those operating in similar domains.

Apple has built a strong reputation for developing innovative, user-focused products that fit seamlessly into its ecosystem. While this approach is frequently praised for its convenience and user-friendliness, it has also sparked concerns about limiting competition.

Apple often develops products and services that can make independent alternatives less relevant. For instance, adding RCS support to iMessage in iOS 18 is viewed as a strategic effort to decrease reliance on apps like WhatsApp. By providing a more integrated and advanced messaging experience, Apple encourages users to remain within its ecosystem.

Similarly, Apple’s Passwords app, which offers a unified solution for managing passwords, could reduce the demand for independent password managers such as LastPass and 1Password.

What apps can be replaced?

Apple’s tendency to introduce native tools that replace third-party apps could threaten various categories. If you work in one of them, you must react immediately and adapt your business and product strategy to new realities:

Proofreading and Writing Tools. Apple’s native writing tools with AI-powered capabilities like grammar correction, changing tone of voice, and summarization may reduce the reliance on third-party tools like Grammarly, QuillBot, and ProWritingAid.
Mail assistants. With the company’s on-device contextual intelligence and improved text generation capabilities, Apple can enable much better productivity with text and reply generation, mail search, and inbox management.
Image Editing Apps & Generators. Apple’s image generation capabilities could reduce the need for “ChatGPT wrappers,” especially for basic tasks like creating simple graphics or altering images. With its Clean Up tool, users can also remove unwanted objects from their photos, eliminating the need for object removal apps like TouchRetouch.
Audio Transcription & Summarization Apps. Apple’s voice recognition and AI-driven transcription tools could impact companies like Otter.ai, which provides transcription services for meetings and conversations.
Personal AI assistants. The supercharged Siri that will understand the user’s context and complete several tasks across apps may eliminate third-party AI assistants like Chat AI or Pi: Personal AI.

Who can Thrive Together?

Professional Photo & Video Editing Software. Advanced Editing Tools for Pros: Although Apple Intelligence improves editing features for everyday users, professionals in photography and videography will continue to depend on the sophisticated functionalities of Adobe’s specialized software, such as Lightroom and Premiere Rush.
Note-Taking Apps. External note-taking applications, such as Bear Notes, which utilize standard editable text formats, can easily integrate Apple Intelligence’s features without additional development. It allows these apps to benefit from the upgrade seamlessly.
Language Translation Apps. Although Apple’s Translate app shows promise, it falls short compared to specialized translation services like DeepL. Apple Translate covers 18 languages, while DeepL supports over 30. Additionally, the accuracy of translations, especially for longer and more complex texts, is not as high.

Takeaways