(Bloomberg) – Apple, which is racing to add more artificial intelligence capabilities, is close to completing an important new software tool for application developers that will increase competition with Microsoft.
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The company has been working on the tool for the past year as part of the next major release of Xcode, Apple's flagship programming software. It has now expanded feature testing internally and ramped up development ahead of a plan to release them to third-party software makers as early as this year, according to people familiar with the matter.
The new system will operate similarly to Microsoft's GitHub Copilot, and will use artificial intelligence to predict and complete blocks of code, said the people, who asked to remain anonymous because the plans are private. This simplifies the programming process for software development, saving time and money.
Apple is also exploring using artificial intelligence to create code to test apps, which is often a tedious process. Currently, Apple is paying some engineers to try out these new AI features internally as part of a “beta” effort — when the company uses its own products — to make sure they work properly before releasing them to outside developers.
The moves are part of a broader push toward generative AI and large language models, the technology behind popular chatbots like ChatGPT. Apple is trying to catch up with its technology counterparts in this booming market, but it has promised to discuss its plans for artificial intelligence later this year. The announcement could come in June, when the company holds its annual developers conference.
Apple shares, which fell 1.5%, briefly turned positive after the news. It was little changed at Thursday's close, trading at $183.86. Microsoft shares fell less than 1% to $406.56.
An Apple spokesman declined to comment on the plans.
It was an urgent mission. Craig Federighi, Apple's senior vice president of software engineering, has asked his teams to develop as many new AI features as possible for this year's operating system updates.
He has also tasked his aides with preparing features that use the technology and made top MP Sebastian Marino Mace a point person in the effort. Apple executives demonstrated the AI functionality to the board late last year, with Marineau Mays doing much of the presentation, the people said. Overseeing the work of Xcode is another Federighi lieutenant, longtime vice president of software engineering, Andreas Wendker.
Read more: Inside Apple's big plan to bring generative AI to all its devices
Apple's upcoming iPhone and iPad software updates — iOS and iPadOS 18 — will include a slew of new AI features, according to the people. The company plans to promote the software, codenamed Crystal, as one of the most important updates in the iPhone's 16-year history.
It also plans to bring some AI features to the next version of macOS, codenamed Glow. However, Apple aims to take a gradual approach to AI development, with some improvements not being made for years.
The company has explored other new AI features, including ones that would automate the creation of Apple Music playlists and the creation of slideshows in PowerPoint rival Keynote. Another feature under consideration is a revamped version of Spotlight, Apple's system-wide search feature.
The new version will be able to switch between specific features within apps and answer complex questions based on data trained from large language models. LLMs, the technology that powers AI tools, were developed by bombarding programs with torrents of data.
Early designs for Spotlight's overhaul include the use of LLMs to answer more complex questions and the ability to leverage applications more deeply to run specific functionality. The current version of Spotlight is mostly limited to launching apps, performing basic web searches, and getting information like weather and sports scores.
Read more: Apple tests 'Apple GPT', develops generative AI tools to capture OpenAI
Apple CEO Tim Cook said during his recent quarterly conference call that engineers “continue to spend a tremendous amount of time and effort” on this initiative.
Competition is escalating. In January, Samsung Electronics Co. A new line of Galaxy S24 smartphones weaves in Google AI features — providing a preview of the kinds of what Apple is expected to do with the iPhone 16 later this year.
The company has also continued to refine its LLM software to improve Siri and services like AppleCare support. The company is looking to improve Siri's ability to answer complex questions accurately, and its customer service teams are trying to speed up chat and phone support. Apple is also investing heavily in integrating artificial intelligence into its health features.
(Updates on stock trading in the sixth paragraph.)
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