Laura Benhamou is a Junior Financial Analyst at I Know First.

Apple and Artificial Intelligence

• Apple acquisition of Turi
• What AI is made for ?
• AI battle among giant tech companies
• Apple’s position in this battle
• Intel enters the AI battle
• AI doesn’t attract consumers
• Artificial Intelligence & I Know First

Apple acquires Turi

This Friday, Apple acquired Artificial Intelligence start-up Turi for about $200 million. Turi is a start-up helping developers to create and to manage software and services that use a form of AI called machine learning. It also offers systems which enable companies to build recommendation engines, detect fraud, analyze customer usage patterns and better target potential users. This could be used by Apple in order to more rapidly integrate the technology with future products.

The recent acquisition of Turi is an opportunity for Apple to better tap into the expanding community of AI researchers. Indeed, it bolsters its capabilities in machine learning and AI.

What AI is made for?

AI is a broad term referring to ways to make computers emulate attributes of the human brain. Machine learning and AI help computers automatically understand images, videos, and spoken words. The technologies also allow systems to take actions or make recommendations on such data. Apple has already begun to show the fruits of its AI investments via better keyword recognition by Siri across multiple product lines.

AI Battle among giants tech companies        

Since 2011, 31 AI start-ups were acquired by large companies. The list of the firm buyers includes Google, Twitter, Yahoo, IBM and so on.

Industry executives link this wave of acquisitions to the quickly widening applications of AI. An initial cycle of excitement about the technology arose in the 1980s. Currently, interest boomed due to breakthroughs in the field known as machine learning, especially in the specific area of deep learning.

Turi’s acquisition by Apple make part of this AI battle against giants like Google, Facebook or Amazon to gain an edge in AI, particularly in pervasive computing, where software tries to automatically infer what people want.

Apple has been roundly criticized for falling behind its competitors in AI and machine learning. Google, Amazon, and Microsoft have much more robust and useful AI capability baked into their platforms. Turi’s technology could feed into Apple’s Siri digital assistant and help define new ways computers interact with people.

Apple’s position in this battle

During the past few years, Apple has acquired many firms specialized in AI to integrate their technologies into products such as its iPhone software and Siri.

But Apple’s Turi acquisition is just the latest in a string of acquisitions related to artificial intelligence. Indeed, last year, Apple purchased VocalIQ and Perceptio, a pair of voice-centric AI startups to bolster Siri. VocalIQ specialized in using machine learning to allow voice assistants to engage in more realistic conversation. Perceptio focused on helping AI systems run on devices while sharing limited amounts of personal user data. In addition, on January, Apple acquired Emotient, a startup that uses AI to recognize and act upon facial expressions.

Apple is following the same pattern it did in acquiring expertise in processor design, which thrust it into a position of leadership in mobile processors within a few years.

Intel enters the AI battle

Intel announced plans to pay an undisclosed amount for Nervana Systems which is a 48-employee company working on services, semiconductors, and software to exploit deep learning. Intel’s move follows the deal by Apple to purchase Turi.

AI doesn’t attract consumers

One of the most significant innovations in the upcoming iPhone 7 will be in the processor. But processor innovation is often ignored in media coverage. Moreover, consumers are not really interested by the details of processor technology. Indeed, the processor helps everything work better, but it’s not an obvious feature the way an OLED screen is. This is an important problem for Apple: how to translate its processor leadership into benefits that will attract consumers?

That’s why, in the same time Apple is acquiring AI Start-ups, it will also launch a new version of its photo-management program for iPhones and iPads. It will recognize objects in photos thanks to AI. Apple will also add a feature that translates words in texts into emoji icons which will bring machine learning capabilities to its iMessage application.

Artificial Intelligence & I Know First

IKF is also using AI to provide daily investment forecasts based on an advanced, self-learning algorithm. The underlying technology of the algorithm is based on artificial intelligence, machine learning, and incorporates elements of artificial neural networks and genetic algorithms through which we analyze, model, and predict the stock market.

I Know First was bullish before and remains bullish on AAPL after the earnings report.  For an example of I Know First’s bullish predictions on Apple prior to the release of Q3 earnings, on June 27th the I Know First algorithm gave a bullish signal of 22.54 for AAPL with a predictability indicator of 0.21 in this 1-month forecast. On July 27th, Apple grew by 10.31% exemplifying the accuracy I Know First’s algorithm.

To learn more about I Know First forecast about Apple, click here.

Conclusion

Tech giants like Apple, Google or Intel are hurriedly snapping up Artificial Intelligence start-ups.

Apple is trying to over pass its competitors by exploiting synergies through its control of both processor and OS development to field the most compelling mobile AI service. It targets to accumulate advanced computing capabilities for its products and services.

Apple will pursue leadership in AI with equal vigor because AI is the ultimate killer app.

To learn more about Apple & AI, you can check this video :