Apple has officially launched the iPhone 16 with its new “Apple Intelligence” features, but the company carefully avoids calling it artificial intelligence. Instead, Apple opts for terms like “intelligent features,” likely to steer clear of the negative associations consumers have with AI, such as unreliability and privacy concerns.

Key AI Features:

  • Smarter Siri for more human-like interactions.
  • Custom emojis are generated by typing commands like “zombie with pizza.”
  • Camera intelligence that identifies dog breeds in real-time.
  • Other AI-powered features remain simple and practical rather than groundbreaking.

Investor and Analyst Reactions:

  • Analysts like Gene Munster expect iPhone sales to exceed forecasts, fueled by user upgrades and brand loyalty, rather than the AI features alone.
  • Despite the modest nature of these AI tools, Apple fans who are overdue for an upgrade are expected to adopt the new devices, boosting sales.

Why No “AI” Mention?

  • Studies show customers tend to avoid products labelled as “AI-powered” due to distrust of the technology’s inaccuracy and unnatural outputs. Apple has wisely distanced itself from the “AI” label, branding its technology as intelligent instead.
  • With AI often associated with buggy or inauthentic interactions, Apple is easing consumers into AI without alarming them with Silicon Valley buzzwords.

The iPhone 16’s AI-driven features may not feel revolutionary, but Apple is betting on subtle, reliable innovations to win over customers. The cautious integration of AI could lead to steady sales, though it’s clear Apple is more focused on protecting its reputation than pushing bold new AI tech.