AI-Powered Features Take Center Stage

Apple’s recent iPhone announcement was expected to be a game-changer, with AI-powered features like photo editing and writing assistants. But the reaction from consumers was muted, with Apple’s share price dropping over $100 billion. The lack of enthusiasm was evident, with even tech enthusiasts finding nothing exciting in the new capabilities.

The Cost of AI

The industry is investing heavily in AI, with companies like Google, NVIDIA, Microsoft, and OpenAI meeting at the White House to discuss AI infrastructure. According to Forbes, the industry is $500 billion short of making back its massive investments in AI hardware and software. The $100 billion in AI revenue projected for 2024 is not even close to this figure.

AI in Adjacent Industries

While consumers may not be excited about AI-powered features, the technology is being used in adjacent industries like robotics and national research clouds. A national AI research cloud was proposed last year by Fei-Fei Li and John Etchemendy, co-directors of the Institute for Human-Centered Artificial Intelligence at Stanford University. The idea is to provide researchers with affordable access to high-end computational resources and large-scale government-held datasets.

The History of AI

AI has been around for decades, but it’s only recently that it’s become a household name. Generative AI systems like ChatGPT and DALL-E were amazing two years ago, but now they need to show that they can be productive. The models driving these experiences have become more powerful, but also more expensive.

AI in the Enterprise

While consumers may not be excited about AI-powered features, the technology is being used in billion-dollar industry applications. AI is used in online advertisement, healthcare, and energy optimization. Generative AI has also become a useful tool for professionals in many fields, with 97% of software developers using AI tools to support their work.

Technical Mechanics

AI is used in various ways, from chatbots to image recognition. Apple’s approach to deploying artificial intelligence seems to be a mishmash of existing functions, many of which are already built into popular third-party apps. The company’s AI-powered features are not revolutionary, but rather an evolution of existing capabilities.

Downstream Implications

The industry is hoping that AI will eventually pay off, but it’s unclear if consumers will take to AI-based features. Tech companies need to show that AI can be productive and useful, not just a shiny new thing. As the industry continues to invest in AI, we can expect to see more AI-powered features in products. But will consumers be excited?

What’s Next

The industry is pushing for a national AI research cloud, which could provide researchers with the resources they need to make breakthroughs in AI. But it’s unclear if the legislation will pass and if the cloud will be successful.

Industry Context

The push for AI-powered features is not just about consumer products. The industry is also exploring the use of AI in other areas, such as robotics and national research clouds. Organizations such as the Allen Institute for AI, IEEE, and OpenAI are also supporting the bipartisan and bicameral National AI Research Resource Task Force Act.

The Broader Industry Context

The AI market is expected to reach $190 billion by 2025, with the majority of revenue coming from business applications. However, the consumer market is expected to grow at a slower pace, with many consumers still skeptical about AI-powered features.

History: Prior Launches, Precedent Regulatory Actions, Earlier Incidents of the Same Category

AI has been around for decades, but it’s only recently that it’s become a household name. Generative AI systems like ChatGPT and DALL-E were amazing two years ago, but now they need to show that they can be productive. The models driving these experiences have become more powerful, but also more expensive.

Technical Mechanics: What Actually Happens Under the Hood, Why This Particular Design Choice Matters

AI is used in various ways, from chatbots to image recognition. Apple’s approach to deploying artificial intelligence seems to be a mishmash of existing functions, many of which are already built into popular third-party apps. The company’s AI-powered features are not revolutionary, but rather an evolution of existing capabilities.

Downstream Implications: Who Benefits, Who is Squeezed, What Decision Comes Next

The industry is hoping that AI will eventually pay off, but it’s unclear if consumers will take to AI-based features. Tech companies need to show that AI can be productive and useful, not just a shiny new thing. As the industry continues to invest in AI, we can expect to see more AI-powered features in products. But will consumers be excited?

Industry Context: Who Benefits, Who is Squeezed, What Decision Comes Next

The push for AI-powered features is not just about consumer products. The industry is also exploring the use of AI in other areas, such as robotics and national research clouds. Organizations such as the Allen Institute for AI, IEEE, and OpenAI are also supporting the bipartisan and bicameral National AI Research Resource Task Force Act.

Conclusion

The industry is pushing for AI-powered features, but consumers are not as excited. Tech companies need to show that AI can be productive and useful, not just a shiny new thing. As the industry continues to invest in AI, we can expect to see more AI-powered features in products. But will consumers be excited?

What to Watch

The next thing to watch is how consumers respond to AI-powered features in products. Will they be excited about the technology, or will they be skeptical? The industry is investing heavily in AI, and it’s unclear if it will pay off. One thing is certain, though: AI is here to stay, and it’s going to change the way we live and work.

References

• Amazon is already offering new OpenAI products on AWS
• Snapchat brings AI-powered conversational advertising to its app
• YouTube is testing an AI-powered search feature that shows guided answers
• Humanoid robots start sorting luggage in Tokyo airport test amid labor shortage
• Top US AI Research Institutes and Tech Giants Support National AI Research Cloud

Updates

• 2026-05-15 — Review: Good Omens finale sticks the landing (source)
• 2026-05-13 — Anthropic’s Cat Wu says that, in the future, AI will anticipate your needs before you know what they are (source)
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• 2026-05-10 — Cricut’s $99 craft cutting machine helped me feel creative again (source)
• 2026-05-08 — Why you can never get your doctor to call you back (source)
• 2026-05-06 — Google shuts down Project Mariner (source)