HTSC: Apple's China region is expected to connect to domestic large-scale AI models, accelerating the development of multimodal capabilities

According to the information from Zhitong Finance and Economics APP, Huatai Securities released a research report stating that Apple will provide a ChatGPT interface in Siri, allowing users to directly use GPT-4o through Siri for free without registration. Additionally, users can access ChatGPT in all system writing tools to achieve functions such as chatbots. ChatGPT will soon be available on the latest versions of iOS, iPadOS, and MacOS. Apart from GPT-4o, Apple is also considering integrating other large models in the future. Considering factors such as language and network restrictions, Apple's intelligence in China may integrate domestic AI large models. Over the past 24 years, the rapid development of domestic AI large models and applications is expected to accelerate with the launch of Apple's intelligence in China, providing continuous optimism for the development opportunities of multimodal AI applications.

Huatai Securities' main points are as follows:

Apple Intelligence Opens a New Era of AI Native Applications

At the 2024 WWDC, Apple introduced "Apple Intelligence," using artificial intelligence and machine learning to enhance user experience by determining notification priorities, providing intelligent writing tools, creating custom images, and automatically performing cross-application operations. Huatai Securities believes that compared to the experiential innovation of AI products, the significance of Apple's AI applications lies more in: 1) Based on localized data, Apple's AI can truly focus on users, seamlessly integrating into their daily experiences or potentially changing users' AI usage habits significantly, with the penetration rate of AI-related applications expected to increase; 2) Based on Apple's strong ecosystem, seamless data linkage between different hardware while ensuring privacy protection is expected to enhance the user experience of AI functions, with the frequency and duration of AI application usage expected to continue to increase.

Siri Upgraded to an AI Intelligent Assistant, Expected to Become a New Traffic Entry Point

Apple will deeply integrate Siri with APPs, evolving Siri from a voice assistant to an AI intelligent assistant with multimodal capabilities. Huatai Securities believes that compared to other AI intelligent assistants, the new version of Siri has the following advantages: 1) Access to local data: Capable of executing relatively complex tasks across apps, such as sending specific photos to designated users through an app;   2) Strong interaction capabilities: Siri has significantly improved its language understanding capabilities and possesses powerful multimodal interaction, supporting the joint processing of various information types including images, voice, and text based on screen perception; 3) Personalization: Using the user's personal context information, Siri provides more personalized assistance, such as searching for specific information or adding new contacts. Huatai Securities believes that the upgraded Siri has the functionality of a personal intelligent assistant, can access localized information across apps, and is expected to enhance user experience AI tools empower Apple's native applications, with scenes expected to expand

In terms of tools, Apple has intelligently integrated multimodal AI content generation capabilities and launched new applications, including: 1) Intelligent Writing + Writing Tools, which can help users rewrite, proofread, summarize text, generate meeting minutes, etc. This feature can be applied to email, memos, Safari, Pages, Keynote, and third-party apps; 2) AI Image + Image Playground: Users can search and modify specific photos in the album through voice commands, and they can also create images through Image Playground, with the generated images usable in Pages, Freeform, Notes, and other apps.

HTSC believes that Apple's AI functions integrated into frequently used scenarios such as albums and information emails. On one hand, AI applications are expected to penetrate from AI tools to AI content. On the other hand, AI tools such as image content recognition, image and text generation have significantly improved work efficiency in scenarios such as education, office work, and creative content production, with the potential to expand to more scenarios in the future.

Risk Warning: Application development progress falls short of expectations, model capabilities fall short of expectations, industry policy risks