Apple Outperformed Google and Microsoft in AI Rollout

Over the last several weeks, we’ve had Google I/O, which highlighted the rollout of Google’s Gemini AI engine for smartphones; Microsoft Build, which focused on its Copilot+ rollout for PCs; and Apple’s WWDC24 video, which showcased the rollout of AI on both PCs and smartphones.

Google’s launch was well executed, focused on attractive and interesting features, and was well received. Microsoft’s event was a bit of a mess; its most advanced capabilities didn’t work on any existing hardware, didn’t encompass most of the PC market, and ran up a ton of negative press on the Recall feature, which got buried under false concerns surrounding privacy.

Apple rolled out its AI — standing for “Apple Intelligence” in a cute spin — across most of its product line, nicely bridging PCs, tablets, and smartphones in a more compelling and comprehensive manner than either Google or Microsoft.

Let’s explore these AI product rollouts this week. Then, we’ll close with my Product of the Week: an advanced videoconferencing app that just embraced Apple’s Vision Pro to create an even more compelling solution for remote workers.

Apple’s Superior Approach to Event Keynotes

One of the biggest problems every company has today is how to market to users. Back when I was growing up, you had TV, radio, and a variety of publications, many focused on tech, in which you could advertise to get the word out. Today, those more traditional mediums are far less effective because people use the web, subscribe to ad-free video services, and learn how to use ad blockers or ignore web-based advertising.

One way that companies like Apple, Google, and Microsoft have to get the message to users is through keynotes at events like I/O, Build, and WWDC. But only Apple treats its keynote as a long-form product promotion vehicle. In contrast, Google and Microsoft tend to adhere to traditional formats, targeting primarily the local developer audience.

However, developers get interested in successful offerings, and keynotes don’t need to get into the weeds on products because there are generally breakout sessions that attendees can go to if they’re interested in the technical details. Most users are not interested, and I would argue that most attendees at these events are not focused on these details since each has their own area of interest, and often that area isn’t tied to the technical demonstration on stage.

Challenges in Microsoft’s AI Rollout

One of the problems Microsoft faced with using ChatGPT as its AI source was that this AI platform has experienced quality problems. These issues negatively impacted Microsoft’s offerings, leading the WSJ to rank it last among five AI assistants they tested. However, the latest version of ChatGPT, the one Apple referenced, came in second. Apple effectively didn’t couple ChatGPT to its OS. Instead, Apple linked to it as a user-triggered option which should mean any related problems will reflect poorly on OpenAI, not Apple.

Elon Musk reportedly threatened to ban Apple smartphones for using ChatGPT. Given Tesla’s performance, I think people might be more willing to give up their Tesla than their iPhone, so I doubt this will end well for Tesla. Musk’s concern is unfounded anyway, as Apple appears to have separated ChatGPT from its OS, not embedded it.

Both Apple and Microsoft announced aggressive indexing apps. Microsoft even branded its app “Recall.” These apps do the same things, but Microsoft was criticized heavily — and largely falsely — for using this technology to spy on users, while Apple, which spent more effort explaining how the technology protected personal information, did not.