Apple’s (NASDAQ:AAPL) recent Worldwide Developers Conference in Cupertino (Apple WWDC 2024) brought about some rather intriguing developments and collaborations that investors are clearly still pricing into this stock. Most notably, the company introduced a range of AI-powered features in a key collaboration with OpenAI. This surprising move (given Microsoft’s (NASDAQ:MSFT) massive stake in OpenAI) is one many initially saw as a move to counter perceptions that Apple is significantly lagging in this AI race.

That said, it does appear the market is now rethinking just how beneficial this partnership will be for the iPhone maker. Tim Cook and other Apple executives unveiled “Apple Intelligence,” an AI platform that will be integrated into iOS 18, iPadOS 18, and macOS Sequoia to leverage Apple silicon for language and image processing, app actions and personal task acceleration.

Given the fact that Apple has set a privacy benchmark with Private Cloud Compute, balancing on-device and server-based processing for enhanced data security in AI, there’s a lot to like about this announced move. Unfortunately, for many companies operating in similar sectors, this announcement wasn’t as bullish.

Let’s dive into three companies and industries that could see the most disruption from the AI announcement at the Apple WWDC 2024.

Grammarly

At Apple WWDC 2024, the company debuted its AI features under the banner “Apple Intelligence,” highlighting its focus on enhancing user experiences. While Siri gains chatbot capabilities, Apple showcased features like “Rewrite,” a writing tool enabling users to improve tone, generate summaries and rewrite text.

Recognizing a familiar tune? The mention of Grammarly’s AI brought back memories, as the user had recently explored it. Grammarly, an AI-driven writing assistant, offers comprehensive writing enhancement beyond simple spell-checking. Its recent genAI update enables users to prompt text generation, indicating Apple’s entry into Grammarly’s domain is one it’s taking seriously.

While Apple Rewrite’s performance remains unknown (in iOS 18’s beta), there are notable contrasts with Grammarly. Apple Intelligence, including Rewrite, is exclusive to Apple devices, limiting its reach compared to Grammarly’s multi-platform compatibility. Thus, for users operating within Apple’s ecosystem, this integration may suffice. However, those using other platforms may still find Grammarly more versatile.

Apple Intelligence’s compatibility is limited to specific devices, necessitating an A17 or M chip. Without an iPhone 15 or newer, or a MacBook equipped with an M-line chip, access to Apple’s AI tools is restricted. That constraint favors Grammarly’s broader accessibility. But as Apple’s market share grows, this feature could become a real pain for Grammarly, particularly in the key U.S. market.

Calculator Apps

With a built-in Calculator app, the iPadOS 18 mirrors the design of its iOS counterpart, offering basic, scientific functions and unit conversions. The device’s larger display allows additional functionalities, including a new History option. 

Additionally, a new Math Notes calculator in the Notes app enables users to type or write mathematical expressions, solving them in real-time and providing graphs for variable-based questions. Now, these additions may not elevate the iPad beyond its current role as a secondary device for advanced tasks. However, it is clear that this application could change the game for calculator apps focused on more advanced mathematical work.

I’ll also note that the release of iPadOS 18 was underwhelming, especially considering the high expectations set by Apple’s latest iPad Pro featuring the powerful M4 chip. Many anticipated significant pro features to maximize the iPad Pro’s potential. While this is certainly an update a portion of Apple’s user base will use, it’s unclear how many applications may be affected by this update and if this revamped calculator will eliminate all use cases for other options in the market.

Every ChatGPT-Powered AI Application

OpenAI’s ChatGPT is the large language model of choice for many applications. The company’s early-mover advantage in the artificial intelligence race has led to significant market share and user recognition. That can be powerful, as companies look to rely on that recognition when deciding who to partner with.

Apple’s recent unveiling of Apple GPT has sparked industry attention, suggesting its recent integration with ChatGPT could be short-lived (assuming the company can reproduce something similar utilizing its own suite of high-profile developer talent.)

Apple GPT isn’t just another chatbot; it’s an AI platform infused with Apple’s trademark touch, offering a distinct edge over counterparts like Chat GPT. With Apple’s focus on high-performance hardware and substantial resources, Apple GPT operates smoother and faster, fueled by cutting-edge neural network training and vast datasets. Its integration within Apple’s ecosystem enhances user experiences across devices, reinforcing its market position.

Additionally, Apple’s commitment to user privacy, demonstrated through on-device processing and differential privacy, addresses concerns associated with data collection, setting it apart from competitors like Chat GPT. Leveraging Apple’s brand recognition, Apple GPT enjoys broader visibility and consumer trust, further solidifying its market appeal.

Under Open AI’s leadership, Chat GPT has cultivated a vibrant developer community, driving innovation. To surpass ChatGPT, AppleGPT must engage users and developers alike, potentially necessitating a more open approach. Leveraging user feedback and strategic partnerships will be crucial for Apple GPT’s growth and refinement in the competitive AI landscape.

Apple Could Be the New Face of AI

Apple Intelligence is clearly focused on revolutionizing some relatively important use cases many have thought should have been improved a long time ago. In a sense, it makes sense to go after low-hanging fruit and start with something. Apple’s recent AI platform unveiling is impressive, and could certainly reshape specific applications and how we use them.

Right now, the market seems to think Apple could be the future face of the AI revolution. I’d have to say companies like Microsoft and Nvidia (NASDAQ:NVDA) may be much better bets in this regard. But I will also say the narrative has shifted in a big way. For Apple shareholders, that’s a great thing.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.