Apple is trying to balance privacy and innovation with the ChatGPT deal

Apple is trying to strike a difficult balance between innovation and privacy as it prepares to launch several artificial intelligence (AI) programs.

As Apple expands its AI offerings through updates to its own features and a partnership to integrate OpenAI’s ChatGPT into Apple devices, the company is touting new systems to keep users’ data private and secure.

The tech giant that has built its brand around prioritizing user privacy and security is aiming to uphold its reputation as it attempts to make waves in the ongoing AI arms race through guidelines that stand out from the typical ChatGPT standards and a new cloud system to process some AI requests. .

But plans to bring ChatGPT directly to devices with an upcoming operating system update could risk changing this dynamic for Apple.

“Over there [are] regulators looking at every single tech company with a sort of microscope in terms of antitrust, in terms of privacy, and what they’re doing around consumer data that they’re using in connection with monetizing that,” said Ari Lightman, a professor of digital media at Carnegie Mellon University.

Apple has stayed away from that in the past and emphasized selling products and services — and as long as they “stick to their core tenants,” Lightman said he doesn’t think there will be a defection of iPhone users.

But a breach or privacy concerns could cost Apple its high ranking in consumer safety in the iOS system and impact the company, Lightman added.

The company announced two major AI updates for Apple devices last week at the Worldwide Developer Conference: Apple Intelligence and an integration with ChatGPT.

The two separate updates seem aimed at complementing each other by giving users options for different AI use cases. While Apple Intelligence focuses on a user’s personal information stored on their iPhone, the integration with ChatGPT would give users a way to access the information from the third-party generative AI system to assist with certain tasks.

To use ChatGPT, users can access the popular OpenAI chatbot for free through the Apple device without having to create a separate account. Users will access ChatGPT through Apple’s voice assistant Siri, which will also be updated, or through writing tools.

Along with the AI ​​updates, Apple announced privacy updates aimed at keeping users safe, including stricter standards for ChatGPT integration than OpenAI’s typical privacy policy.

Apple also announced Private Cloud Compute, a cloud intelligence system designed for private AI processing. Apple said the system brings its “industry-leading security and privacy” from Apple devices to the cloud, and the personal user data sent to the system will not be accessible to anyone, including Apple, except the user.

Given Apple’s focus on selling products rather than user data like some of its rivals in the tech industry, it is “not surprising that they explicitly emphasize privacy, security and transparency in the presentation,” says Valerie Wirtschafter, a fellow at the Brookings Institution’s Artificial Intelligence and Emerging Technology initiative.

‘I suspect so [a] It is a terrible business decision not to honor these types of commitments, but it will certainly be interesting to see how it plays out in practice,” Wirtschafter said in an email.

The integration has already raised some questions about data privacy, including from Tesla and X owner Elon Musk, a fierce critic of OpenAI, and CEO Sam Altman.

Following Apple’s announcement last week, Musk threatened to ban Apple devices from his companies, calling the OpenAI integration “an unacceptable security breach.”

Musk’s criticism came after he previously took legal action against OpenAI. Musk filed and later dropped a lawsuit against OpenAI and Altman in March, claiming the company failed to adhere to its founding mission to develop AI for the benefit of humanity, a day after his threat to ban Apple devices because of the collaboration.

However, when announcing the integration with ChatGPT, Apple announced different rules than OpenAI’s typical rules.

Notably, user requests sent to ChatGPT via integration are not stored by OpenAI. And on top of the contractual obligation that OpenAI will not attempt to match a user to their request, Apple will make things difficult on a technical level by obscuring users’ IP addresses, an Apple spokesperson said.

However, if a user chooses to link their ChatGPT account, they will be subject to OpenAI’s rules.

“If you look at Apple integrating OpenAI, I think it’s actually a good thing for OpenAI…not a bad thing for Apple, because OpenAI now, through partnership, [get the] benefit from all of Apple’s experience,” said Jason Hogg, an executive in residence at Great Hill Partners and a former FBI special agent.

Apple’s integration with OpenAI comes as the ChatGPT maker has been enjoying public popularity with the chatbot on the market for more than a year. That popularity has also led to criticism in the form of regulatory investigations and lawsuits over copyright issues.

Apple’s move also follows in the footsteps of AI announcements from rivals including Microsoft, which has integrated OpenAI into its own services, and Google’s launch of rival chatbot Gemini.

Until last week’s announcement, Apple had been more quiet about AI updates and improvements, while other tech giants pressed ahead.

“To what extent is Apple willing to work with a company that is being heavily sued by a variety of different organizations and associations?” Lichtman said.

“It basically shows that they are willing to take that hit and try to level up in terms of AI capabilities, that’s how lucrative the space is,” he added.

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