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WWDC 2024: Apple must make a strong statement about GenAI

Apple’s Worldwide Developer Conference (WWDC) is just around the corner, and this edition is going to be its most important in recent years. There is increasing adoption of GenAI in smartphones and several of Apple’s competitors have gained a head start. There is a lot of expectation riding on what Apple will unveil in its own GenAI strategy. Apple has the power to drive awareness of AI-mediated features in a way that few other players can, but its own AI capabilities are weak, so it has work to do.

Apple will highlight future GenAI use cases

Apple must make a strong statement about GenAI to stay relevant. GenAI is subject of massive hype right now, even if real use cases are thin on the ground. Apple has the opportunity to recapture some of initiative it has lost to others. But it’s not going to be easy.

Apple is expected to announce how it will use GenAI models. It will explain how it goes beyond user-interface-level use cases and focus on application-level use cases. We therefore expect Apple will create a foundation for developers to integrate LLM’s into applications.

Siri is likely to get a significant update. Siri has been a laggard in voice assistants – a position that has become more and more noticeable as GenAI momentum has gathered pace. Future scenarios for how GenAI and AI more broadly, can deliver real value to consumers often focus on the evolving role for digital assistants that are based on software agents. In theory, these assistants will be capable of more human-like interactions, learn from users’ behaviour, and take actions on a user’s behalf. For example, users will be able to ask Siri to book hotels or flights for them without having to open individual applications. This type of intent-based or action-based approach is central to things like the Rabbit R1, the failed Humane AI Pin and seen in concepts such as Deutsche Telekom’s demo during MWC24. But there a lot of questions about where data resides, how privacy in managed, the role of applications and more. We expect that Apple has been thinking about these aspects and will be ready to address them.

To achieve any of this, the Apple will need to share information with third party applications to allow for natural interactions via Siri. This will likely raise as many questions as it answers. But Apple is one of the few companies that just might be able to pull this off.

180 million iPhone users to experience Apple’s native on-device GenAI capabilities by 2025

One of the challenges of GenAI is how to market its benefits to end consumers. Leveraging GenAI capabilities, smartphones will slowly learn and align more to their users’ habits and needs. This is a challenging aspect to market and can be best understood only when a user experiences it while using the devices over time. This is where Apple’s scale comes into play.

We expect the iPhone 16 Pro and Pro Max and will be powered by Apple’s native on-device Gen AI capabilities. In addition to on-device AI, Apple is also likely to have cloud-based GenAI use cases, which can potentially be made available to broader iPhone installed base of users.

Privacy to be a key narrative

The future of AI is likely to be hybrid, with some use cases running on device while others use cloud resources. This will depend on the compute requirements and the criticality of the use cases. We would be surprised if Apple let’s any third-party models run natively on iPhones. Apple may have to negotiate a way to preserve user data while benefiting from aspects of the third-party models. Alternatively, use cases involving third party models could run in the cloud with Apple harvesting the results for use on device.

Either way, privacy will be a primary consideration given Apple’s strong narrative of “what happens on your iPhone, stays on your iPhone”, which has resonated with Apple’s customer base.

Smartphone OEMs Set to Play Crucial Role in Bringing AI to the Masses

Smartphones are the perfect platform for making AI accessible to everyone. Their hardware and software capabilities are constantly improving, making them ideal for running AI models.
Generative AI is revolutionizing smartphones. It offers personalized experiences, enhances existing features, and allows for more intuitive interactions.
Smartphone OEMs have the most potential in democratizing AI. OPPO has committed to making generative AI features available for about 50 million OPPO smartphone users worldwide this year.

Lately, new AI technologies and AI-related products are sprouting up almost every day. The latest generative AI models can view and understand the real world in real time, enabling humans to interact with machines based on the information captured by AI. Almost all companies are using smartphones in their demos instead of devices like augmented reality glasses, AI pin, or other fancy mobile gadgets. Smartphones have become a necessity as nearly 5 billion people around the world rely on them daily. Although these devices have been around for many years, they still have great potential yet to be unlocked and could play a crucial part in driving AI popularization.

Smartphones are the perfect carriers for AI functionalities due to their comprehensive input and output capacities and their ever-increasing hardware capabilities, particularly in AI computing power. As a result, smartphones have a crucial role to play in making AI technology accessible to all and smartphone OEMs will be key drivers in this process.

Source: Counterpoint Research

Smartphone OEMs have the most potential in democratizing AI

The advent and rapid rise of generative AI has sparked great consumer interest in AI. The technology is quite impressive as it can analyze and memorize user habits to provide personalized services, making the user experience more unique and efficient. It also enhances voice assistants, camera and display functions, and battery and connectivity management, boosting smartphone performance and user satisfaction.

In an environment where AI has many functionalities and AI model suppliers are in plenty, developers face a lot of challenges in building and integrating AI features into existing operating systems (OS), which connect hardware and software capabilities with user scenarios. This is where smartphone OEMs could be helpful, as they can bridge this implementation gap to ensure seamless AI operations.

Smartphone OEMs have deep experience in understanding user demand and integrating solutions into the OS. They collaborate closely with chip vendors to fine-tune large language models (LLMs) for the smartphone environment.

Additionally, OEMs work with leading global AI companies. For example, OPPO has been working with both Google and Microsoft to bring leading AI technology to users.

OEMs have invested substantial resources to develop their own large AI models at various scales from hundreds of millions to billions of parameters. Based on these developments, smartphone OEMs are at the forefront of promoting the device+cloud hybrid AI deployment mode. This hybrid mode could also accelerate the proliferation of AI technology from flagship-exclusive to the mass market.

Generative AI Smartphones: Expanding Beyond Flagships

Counterpoint believes that 2024 will be the inaugural year for generative AI smartphones. In H2 2024, more applications and features powered by generative AI models are expected to appear on devices and in the cloud. Meanwhile, more smartphone models will have AI models deployed locally or access AI models in the cloud.

According to Counterpoint’s forecast, by 2027, generative AI smartphones will account for more than 40% of the global smartphone shipments, and the installed base will exceed 1 billion units.

Source: Counterpoint Research Smartphone 360 Service, GenAI Smartphone Shipments and Insights Report
Note: The forecast generative AI smartphone refers to smartphones that can run multimodal AI models.

To achieve such growth, generative AI features have to be accessible to market segments beyond flagships. And consumers also need to be convinced that smartphones with AI capabilities can truly change their lives. Figuring out such use cases or the killer application is the key.

In the process of finding the right use cases, feedback from customers is essential to help OEMs calibrate their strategies. Hence, the more that customers have access to generative AI features, the more feedback can be gathered, allowing OEMs to improve their applications and operating systems to better cater to users’ demands compared to the previous generation.

OEMs must take the first step and make AI features accessible to more smartphone users to kick off the process. Only after users truly experience the power of generative AI will they consider replacing their current smartphones for ones with better AI capabilities.

Some OEMs are actively introducing generative AI features to the mass market by fully utilizing cloud-based AI capacities. OPPO is bringing generative AI to all of its product lines in 2024. By the end of the year, OPPO expects about 50 million OPPO AI phones to be in the hands of users globally.

AI technology is poised to substantially change the world and revolutionize people’s lives, workplaces and interactions with others. Smartphones are the perfect vehicles to drive the popularization of AI, and we expect smartphone OEMs to find ways to better integrate the latest generative AI technology with their devices, promoting sustainable growth of the industry.

* This Blog was sponsored by OPPO

Computex Taipei 2024: Day 2 – Key Takeaways

Computex Taipei 2024, tech’s biggest event in Asia, is currently underway. Our analysts are on the ground to bring you the latest updates. Day 2 kicked off with keynote addresses from industry leaders. Here are the standout announcements:

Intel: Advancing AI and Data Center Technology

Intel introduced its new Xeon 6 data center processors, emphasizing its ongoing commitment towards AI chip development. Additionally, Intel unveiled the Gaudi 3 chip, which boasts superior training and inferencing speeds compared to NVIDIA’s H100. The Gaudi 3 offers 40% faster performance in training a GPT-3 model, 15% faster inferencing throughput on Llama2, and on average 2x faster inferencing performance compared to NVIDIA’s H100. Another highlight was the Lunar Lake SoC, designed for AI PCs and laptops. According to Intel, Lunar Lake offers up to 3x more AI computing power than the current Meteor Lake processors. Intel aims to ship 40 million AI PCs by the end of 2024, with over 8 million already in the market.

Source: Computex

MediaTek: Highlights AI and Connectivity

MediaTek showcased its new Dimensity 9300 chip and DaVinci platform, aimed at enhancing GenAI app development for mobile devices. The company also highlighted its innovations in the automotive sector with a 3nm smart cockpit SoC capable of running real-time edge AI applications. Additionally, in the wireless connectivity arena, MediaTek presented the 5G RedCap RFSoC platform T300, designed for IoT products requiring high connectivity efficiency, long battery life and compact space. Customers are currently testing this platform, with plans to introduce it into wearable devices by 2025. MediaTek’s presentation included a comprehensive product lineup featuring mobile SoCs, smart home devices, Chromebooks, tablets, 5G CPE, satellite communication and Wi-Fi solutions. These developments reflect MediaTek’s continuous and extensive focus on AI technology and wireless connectivity.

Source: Counterpoint Research

From the Floor: Gigabyte Facilitates Clustering for Turnkey AI Infra

Gigabyte stole the spotlight with its GIGA POD solution, highlighting the importance of clustering in the AI boom. The scalable, turnkey AI supercomputing infrastructure offers high throughput and compute power necessary for running deep learning models at scale. Leveraging advanced NVIDIA and AMD accelerators, GIGA POD ensures optimal performance for heavy AI/ML workloads. These innovations position Gigabyte as a major player in the AI infrastructure space, ready to support the growing demand for AI and cloud services.

Source: Counterpoint Research

Computex Taipei 2024: Day 1 – Key Takeaways

Computex Taipei 2024, Asia’s biggest tech event, has officially kicked off and Counterpoint’s analysts are on the ground to bring you the latest updates.
Day 1 was set in motion with keynote addresses from industry leaders such as NVIDIA CEO Jensen Huang, . Here are the standout announcements:

NVIDIA unveiled its latest AI advancements, promising faster, smarter tech.
AMD showcased new processors that redefine performance and efficiency.
Qualcomm revolutionizes the AI PC with Snapdragon X Elite.
Arm powers the AI future with 100 billion devices.

NVIDIA’s Ecosystem and AI Innovations

Comprehensive AI Ecosystem: NVIDIA’s keynote on the first day of Computex Taipei 2024 extended beyond GTC’s focus on AI innovations by highlighting the broader ecosystem that supports AI technology advancements. Taiwan’s AI Server Original Design Manufacturers (ODMs) play a crucial role as they serve as production partners and potential clients for NVIDIA’s advanced AI servers. The keynote showcased the company’s comprehensive ecosystem, which includes a thriving developer community, a vast array of optimized applications and a diverse portfolio of chips, systems, networking solutions and proprietary technologies.
Annual AI Accelerator Updates: NVIDIA CEO Jensen Huang emphasized the company’s commitment to continuous improvement in AI accelerators. The annual upgrades focus on reducing costs and energy requirements while adding new tools and software models. This approach ensures that NVIDIA remains at the forefront of high-performance AI computing. The keynote featured a virtual avatar and voice clone of CEO Jensen Huang, demonstrating the power of NVIDIA’s standalone GPUs in delivering high Trillion Operations Per Second (TOPS) performance, crucial for real-time rendering of highly realistic virtual avatars and voice cloning.
NVIDIA Inference Microservice (NIM): At the event, NVIDIA introduced the NVIDIA Inference Microservice (NIM), a pre-trained AI model integrating cloud-native technologies like CUDA, QDNN, TensorRT and Triton. NIM is designed to support corporate data centers and Cloud Service Providers, adding significant value to NVIDIA’s offerings. This new tool exemplifies NVIDIA’s focus on providing comprehensive solutions that cater to the evolving demands of AI technology.

AMD’s Breakthroughs in AI and High-performance Computing

Meeting NVIDIA’s Annual Release Cycle: AMD is keeping pace with NVIDIA’s annual release cycle with the introduction of the MI325X, which is set to launch in Q4 2024. This new release underscores AMD’s commitment to providing high-performance AI computing solutions that can compete head-to-head with NVIDIA’s offerings.
Highlighting its Presence in PCs and Laptops with Strix Point: AMD highlighted its presence in PCs and laptops with the new Strix Point processors, part of the third-generation Ryzen series. These processors, designed for ultra-thin and premium notebooks, combine Zen 5 CPU, RDNA 3.5 graphics and XDNA 2 NPU, delivering 50 TOPS of compute for AI experiences at low power.
Third-generation Ryzen AI Processors and Copilot+ PC: The third-generation Ryzen AI series processors significantly boost AI and computing performance. AMD’s latest NPU achieves 50 TOPS, with 5x the compute capacity and 2x the energy efficiency of its predecessor. The Copilot PC, powered by AMD’s new processors, integrates on-device AI for seamless functionality, enabling advanced features with robust performance and efficiency.

Qualcomm and the AI Revolution in PCs

The PC is Reborn: Qualcomm’s focus at Computex Taipei 2024 centered around AI PCs, partnerships and power efficiency. The messaging highlighted its commitment to advancing both processing power and energy efficiency, which is crucial for next-generation AI applications. The Snapdragon X Elite platform aims to transform how we use the PC by offering advanced AI capabilities. Qualcomm is committed to supporting the ecosystem’s shift to AI PCs, ensuring seamless user experiences.
Strategic Partnerships: Qualcomm‘s partnerships with major players like Microsoft, Dell, Lenovo and HP signify its strong entry into the PC industry. These collaborations are pivotal for Qualcomm’s strategy to establish a foothold in the competitive PC market, leveraging the strengths of its partners to drive innovation and adoption of AI-enabled PCs.

100 Billion AI Devices by the End of 2025 at Arm’s Reach

Accelerated Innovation Timeline: Arm CEO Rene Haas announced that by the end of 2025, over 100 billion Arm devices will be ready for AI applications. This milestone highlights Arm’s significant impact on the AI landscape and its commitment to facilitating developer creativity. The aggressive innovation timeline includes leveraging the latest advancements in technology to ensure rapid development and scalability of AI applications.
New CSS for Clients and Cortex X925: Arm introduced the new CSS for clients and the Cortex X925, promising major advancements in AI and security for next-gen PCs. These innovations, previously exclusive to data centers, are now poised to enhance the performance and efficiency of consumer devices.

China’s Foldables Sell-through Up ~50% in Q1 2024 as Book-type Sales Nearly Double

China’s Q1 2024 foldable smartphone sell-through grew 48% YoY.
The key driver was book-type foldables which almost doubled in shipments, while flip type remained muted.
Thinner, lighter iterations and more use cases have boosted consumer demand for book-type foldables.
We expect China’s foldables market to continue with healthy growth.

China’s foldable smartphone sell-through climbed 48% YoY in Q1 2024, continuing its robust growth momentum, while the overall smartphone market rose only 2% YoY during the quarter. Foldable smartphones have been a key strategic focus for Chinese smartphone OEMs since early 2020. These OEMs hope that the new form factor will help revive the otherwise stagnant smartphone market and expand their penetration in the premium segment.

Additionally, book-type foldable shipments grew 91% YoY in Q1 2024 while those of clamshell-type foldables slipped 1% YoY, according to Counterpoint’s Weekly Data Tracker Service. There was a significant surge in book-type foldables as consumers have started to favor this form factor over the clamshell type because of the wider range of use cases they offer. The large screen allows for better multitasking capabilities, enabling users to run multiple apps at the same time and switch back and forth more efficiently. The almost tablet-like experience when unfolded makes them ideal for work-related tasks such as editing documents and managing emails, as well as for entertainment activities like watching videos and gaming. Additionally, after many generations, book-type foldables have also become thinner and lighter, making them more appealing to consumers.

Huawei has a strong foothold in China’s foldables market and was one of the first OEMs to launch foldable products. In Q1 2024, Huawei led sales in both book-type and clamshell-type foldables, thus marking a resurgence. The increase in Huawei’s market share was primarily due to the introduction of 5G-enabled foldables for the first time, with the book-type Mate X5 and the clamshell-type Pocket 2 becoming bestsellers immediately upon release. Both foldables are powered by Huawei’s latest self-developed 5G-enabled SoC, the same chipset that drives the Mate 60 series.

The foldable market has made significant strides in enhancing both software and hardware. Recent launches, in particular, have showcased notable advancements. The HONOR Magic Vs2 claims to be one of the lightest book-type foldable in the market, weighing only 229g, on par with that of bar phones. The phone is also quite slim, measuring 5.1mm when unfolded and 10.7 mm when folded. The light weight is due to the aerospace-grace magnesium alloy frame and the Luban titanium hinge. The Magic Vs2 also has a fair price value, starting at RMB 6,999 (around $950).

Apart from the hardware, OEMs have also focused on enhancing the software to improve user experience. Huawei showcased some outstanding software optimizations in its latest book-type foldable, the Mate X5. Huawei’s pioneering air gesture control feature is also being incorporated in the Mate X5 and can be used in both the inner and outer displays. Users can use hand gestures to navigate content, watch videos and even take screenshots without touching the screen. Additionally, Huawei has collaborated with software partners to build a foldable ecosystem, deeply customizing many leading apps on the market to better suit foldables.

For 2024, Chinese OEMs have adopted a more cautious approach with regard to launching new foldables and will be focusing more on profitability than aggressive expansion. Evidently, the number of new launches has declined in Q1 2024 compared to previous quarters. Nonetheless, we expect the foldable market to remain a bright spot in China’s smartphone market, maintaining robust growth.

Infographic: Q1 2024 | Smartphones | Mobile Market Monitor

Our Q1 2024 Market Monitor report has been published. We release one infographic each quarter to summarize the global smartphone market activities in a single page.

Some quick observations on the smartphone market:

The global smartphone market grew 6% YoY to reach 296.9 million unit shipments in Q1 2024.
Samsung dethroned Apple to become the top smartphone player globally, capturing a 20% shipment share.
Although Apple’s shipments declined 13% YoY, however, the brand’s ASP grew to a record first-quarter high driven by improved performance of the Pro models.
Among the top five OEMs, Xiaomi grew the fastest, registering 34% YoY shipment growth.
Global smartphone revenues also grew 7% YoY, hitting highest-ever for a first quarter.

Use the button below to download the high resolution PDF of the infographic:

The CHIPS Act and its Impact on the US Foundry Industry

US Commerce Secretary says US to produce 20% of leading-edge chips by 2030. We project US to make at least 10% of sub-10nm chips by 2030.
Intel, Samsung and TSMC have transformed the US into a 2nm process battleground with more than half of the CHIP Act direct subsidies in their coffers.
The downside risk of the overseas expansion will be higher wafer prices.

The disruptions caused by the Covid-19 pandemic spurred the US to focus on revitalizing its semiconductor industry, while global trade tensions prompted it to reevaluate its reliance on Asian manufacturing. With a noticeable decline in its global semiconductor manufacturing share, the US is now advocating for domestic fabrication facilities. Globally, over 70% of foundry market revenues stem from Asia, with the US contributing less than 10%.

In August 2022, US President Joe Biden signed the CHIPS and Science Act, allocating $280 billion to advance semiconductor research and manufacturing in the US. Out of this sum, $52.7 billion was earmarked for chip manufacturing subsidies and tax credits, with an additional $13 billion for research and training, aimed at fortifying US supply chains and ensuring the success of the country’s semiconductor industry. US Secretary of Commerce Gina Raimondo aims for the US to produce 20% of the world’s leading-edge logic chips by 2030. With significant US investments, we project at least 10% of sub-10nm chips will be made domestically by 2030.

Global Leading Foundries Receive Around 55% of US Subsidies

In a recent series of multi-billion-dollar grants, Intel, TSMC and Samsung collectively received over half of the $39 billion CHIPS Act incentives. The Act has initiated numerous projects aimed at boosting manufacturing capacity in the US, especially for advanced nodes.

Intel is set to receive up to $8.5 billion in direct funding to propel its domestic semiconductor projects. The company also stands to benefit from a US investment tax credit of up to 25% on more than $100 billion in qualified investments.

TSMC touted agreements with the US government to secure $6.6 billion in direct funding. The agreement also proposes to provide TSMC with as much as $5 billion in loans and up to 25% tax credits for its $65 billion capital expenditure in Arizona.

Samsung was granted a $6.4 billion subsidy for its $45 billion chip investment in Taylor, Texas where it is building a 4nm EUV manufacturing facility. The plant is set to begin mass production in 2025.

Foundry Giants Compete to Produce Next-gen Cutting-edge Chips

As funds flow into US coffers, we expect a showdown among top advanced-node chipmakers, Intel, Samsung and TSMC, to turn the US into the battleground for 2nm processes. Recent updates reveal advancements in the advanced nodes of these companies’ US plants.

Intel’s ambitious plan, dubbed 5N4Y, targets the release of five nodes within four years, with the 18A process slated to lead by 2025. Recent milestones include the completion of the first 18A product (Clearwater Forest), with volume ramp-up expected by 2025. Furthermore, Intel has enhanced its roadmap to feature the more advanced 14A in its leading-edge node lineup.

TSMC’s first Arizona plant (N4) is slated for production in H1 2025, with plans for a second plant to produce 2nm chips alongside the previously announced 3nm. This second plant, expected to launch in 2028, could increase TSMC’s capacity to 50,000 wafers per month. Notably, TSMC aims to serve prominent US customers like Apple, NVIDIA, AMD and Qualcomm with its advanced process capacity in the US. Additionally, the availability of 2nm chips in the US could bolster TSMC’s market share against Intel’s 18A process.

Samsung is constructing a 4nm EUV manufacturing facility in Taylor, Texas, set to commence mass production in 2025. Initially, only a limited volume of equipment setup is expected, capable of producing 5,000 12-inch wafers per month by H2 2024.

Source: Counterpoint Research

Overseas Expansion Risks Could Lead to Higher Wafer Prices

In the realm of more sophisticated technology nodes, greater quantities of materials will be required for additional layers and process steps in wafer production. Historically, we have observed a 5%-15% uptick in the total number of mask layers. Additionally, other cost drivers such as maintenance and labor expenses are anticipated to emerge.

These factors will inevitably raise the overall cost structure. We project that inflation in fab construction costs will continue to outpace broader inflation levels, at least until 2030. This is primarily due to the absence of a sustained volume of new fab buildouts in the US.

GPT-4o: OpenAI’s New Frontier in User Experience

OpenAI marked a significant leap forward with its much-anticipated spring update – not by launching a new model like GPT-5 but by introducing GPT-4o, a cutting-edge model that integrates audio, visual and text processing in real time. GPT-4o (“o” for omni) is all about enhancing user experience, and it comes packed with new features and improvements that are set to revolutionize human-machine interaction. Here are some key highlights from OpenAI’s announcement:

Real-time Multimodal Integration: GPT-4o combines audio, visual and text processing, enabling it to interact with users more naturally and intuitively. In a way, GPT-4o integrates three models – text, vision and audio.
Free Access with Improved Speed: OpenAI claims GPT-4o is 2x faster than GPT-4. Users can enjoy the intelligence of GPT-4 with even faster performance, all at no cost.
Enhanced Memory and Analytics: The addition of memory and advanced analytics allows for more sophisticated and personalized interactions. GPT-4o can interpret complex visuals like charts and memes alongside text inputs. Files can be directly uploaded from Google Drive and Microsoft One Drive.
Multilingual Support: Available in 50 languages, GPT-4o caters to a global audience, breaking down language barriers.
Developer-Friendly APIs: Developers can leverage GPT-4o’s capabilities through newly available APIs, fostering innovation across applications.
User-centric Design: The new interface emphasizes a highly integrated and intuitive user experience.
Desktop App: OpenAI will also release a desktop application in addition to the mobile application to cater to a wider range of user needs.
Pricing: GPT-4o’s API pricing is half that of GPT-4 Turbo. In GPT-4o input cost $5 per million tokens while output costs $15 per million tokens. Considering that GPT-4o’s token throughput (tokens per second) is almost 3x that of GPT-4 Turbo, the value proposition is much better for GPT-4o.

Image Source: AI Supremacy

Implications of GPT-4o

Improved Human-Machine Interaction

During the model demonstration, GPT-4o showcased its ability to create more natural conversations. It can generate voice responses in various emotive styles and adjust its answers in real time, even when interrupted or given additional information. This adaptability is a game-changer for human-machine interaction, positioning OpenAI at the forefront of this rapidly evolving field.

OpenAI’s investment in humanoid companies like Figure hints at the broader applications of GPT-4o. The advanced capabilities of this model could significantly enhance the functionality of humanoid robots, making interactions with these machines more fluid and human-like. Additionally, AI devices like wearables and smartphones stand to benefit immensely from GPT-4o’s real-time processing and contextual understanding.

Transforming Customer Service and Virtual Assistants

With its improved contextual understanding and ability to handle complex tasks, GPT-4o is poised to revolutionize customer service and virtual assistants. Its quick, accurate and context-aware responses could enhance user satisfaction and efficiency in these domains, setting new standards for AI-driven interactions. Siri looks outdated when compared to the GPT-4o voice assistant and it would be interesting to see how GPT-4o gets integrated with devices to be able to search and answer based on on-device files.

Advancing Language Translation

GPT-4o’s multilingual capabilities are particularly impressive. During the demonstration, the model translated from English to Italian almost instantaneously, showcasing its potential to improve language translation services. This feature can facilitate more accurate and context-aware translations, bridging communication gaps across different languages.

Personalized Learning Experiences

In education, GPT-4o could offer more personalized and effective learning experiences by adapting content to individual learners’ needs and preferences. For instance, the model’s ability to assist with solving mathematics problems step by step, though seemingly basic, holds the potential to transform educational practices by providing tailored support to students. Schools and colleges are geared towards one-to-many interactions leaving some of the learners behind. GPT-4o as a personal tutor can help students get one-on-one support. However, it remains to be seen how efficient and effective the model is in solving complex problems.

Concerns on Potential Misuse

There are ethical considerations and societal implications in developing human-like AI technologies as they are next step to AGI. The new models can be misused by creating a potentially manipulative AI companion. The model’s ability to process audio and visual inputs could be used to generate highly realistic but fabricated content, such as deepfake videos or synthetic voices, which can be difficult to distinguish from authentic content.

First Impressions

Counterpoint’s team tested GPT-4o on the mobile application as well as on browser and the model’s analytical prowess proved to be remarkable. The team uploaded a stock chart for analysis and shared the results with a seasoned stock technical expert who was thoroughly impressed by GPT-4o’s remarkable output.

Image Source: Mohit Agrawal, Counterpoint Research

In another test, we provided the model with a stock report for ABN AMRO and requested a summary. Remarkably, not only did GPT-4o summarize the report accurately, but it also responded with precision to pointed questions derived from the document. Some inquiries even required the model to interpret charts within the report, which it delivered accurately and without hesitation.

However, the mobile application’s audio experience fell short of expectations. High latency detracted from the smoothness anticipated from OpenAI’s demo event. Despite significant lag in translating from English to Italian, the quality of translation remained exceptional, demonstrating the model’s linguistic prowess.

On the downside, the free version of the application often ran out of credits, hindering file uploads and leading to downgrades to GPT-3.5. However, there was a silver lining in the form of more frequent limit resets, which increased from every 12 hours to every 5 hours. We expect limits to increase substantially as capacity constraints are addressed – a familiar hurdle faced by OpenAI during its initial launch.

Conclusion

OpenAI’s focus with GPT-4o is clear – enhancing user experience. By prioritizing the integration of advanced features and a user-friendly interface, OpenAI aims to maintain its competitive edge. The commitment to improving human-machine interaction highlights the company’s strategic direction in the AI landscape.

GPT-4o represents a significant advancement in AI technology, not through the introduction of a new model, but by fundamentally improving how users interact with AI. Its real-time multimodal integration, enhanced features and focus on user experience make it a pivotal development in the AI field. As OpenAI continues to innovate, GPT-4o stands as a testament to the company’s dedication to leading the future of human-machine interaction.

GenAI in Retail: Opportunities Galore, Challenges Remain

For retailers to fully embrace the opportunity of advanced technologies like GenAI, solution enablers need to find ways to remove obstacles holding back implementation.
There are opportunities left untouched right now to make use of the existing device capabilities and push user engagement further. This is because of long-held beliefs as to how users prefer to engage with their devices and content.
There have been instances of technology rollouts being reversed, confirming the need for a careful evaluation of available solutions.

The Location Based Marketing Association (LBMA) recently held its annual RetailLoco conference in Minneapolis, Minnesota. The event brings together experts and stakeholders from across the retail technology ecosystem. This year’s edition showcased GenAI brand activations while underscoring the persistent challenges retailers face in integrating advanced smartphone features and AI across their physical and online shopping experiences.

Opportunities to grow for all

While a cautious approach to AI and GenAI was a theme throughout the event, there were a few interesting implementations highlighted:

Burger King Brazil ran a promotion where menu combinations were presented to mobile app users once they scanned their facial expressions.
L’Oréal’s Perso at-home assistant integrates Breezometer weather and location information to provide personalized makeup suggestions.

Image source: Gerrit Schneemann, Counterpoint Research

These activations show the potential of GenAI capabilities to engage customers in new ways. At scale, these types of examples can lead to personalized shopping or dining experiences, previously impossible to deliver.

For retailers to fully embrace the opportunity of advanced technologies like GenAI, AR/VR and network-based positioning, solution enablers need to meet them halfway and find ways to remove most of the obstacles currently holding back implementation:

Retailers must prioritize the seamless integration of mobile payments and user-centric experiences.
AI-driven solutions possess the capability to enhance operational efficiency, personalize interactions and streamline business processes, be it predictive maintenance in manufacturing or AR-enhanced marketing endeavors.
Technology providers must recognize that a one-size-fits-all approach to the deployment of new technologies will not work, and the availability of customizable solutions will be critical for adoption.
End users are likely to embrace new technologies if there is a clear benefit for them. This includes sharing location information, downloading specific apps, and changing device use patterns to take advantage of new features.

Fragmentation of backend systems overshadows new technologies’ potential utility

One of the key themes of the presentations by representatives from companies like Harley Davidson, Glympse and Kroger was that technology availability does not necessarily translate to a clear strategy on how to implement these solutions across mobile apps, online, and retail locations.

A striking example of the lack of utilization of existing features on smartphones is augmented reality (AR) for discovery and guidance within stores. The focus of navigation remains on A-to-B guidance to a store with heavy stress on displaying the famous blue dot on the map, with pedestrian guidance and AR content integration appearing out of favor at this point.

There are opportunities left untouched right now to make use of the existing device capabilities and push user engagement further. This is because of long-held beliefs as to how users prefer to engage with their devices and content. One such point of contention is how users would engage with AR content, and the need to hold up a phone to view it. However, this should be less of an issue now as video content creation across social media is standard behavior for many. Gone are the days when phones were neatly tucked away while on the go.

Another challenge to the full embrace of advanced mobile features appears to be the long tail of proprietary internal systems. Retailers feel inadequately prepared to navigate technologies such as AI, chatbots, AR and VR. Constraints stemming from budgetary limitations, dearth of internal resources and lack of executive endorsement impede their adoption efforts further. While mobile payments, AI and chatbots hold immense promise, retailers grapple with the complexities of implementation.

Image source: Gerrit Schneemann, Counterpoint Research

Importantly, there have been instances of technology rollouts being reversed, confirming the need for a careful evaluation of available solutions. Walmart’s reversal on self-checkout stations and findings that Amazon’s touchless shopping experience in physical stores was powered by a large workforce decoding video streams instead of AI are key examples that are likely to cause large organizations to pause and re-evaluate their plans and adjust accordingly.

RetailLoco 2024 served as an interesting snapshot of the status quo and future of retail, where AI and innovation are significant opportunities for all involved in the value chain. However, there are a host of obstacles in the way of faster adoption of the most advanced solutions, driven by an undeniable wariness to over-committing to potentially flawed technologies and the realities of proprietary internal systems, ill-equipped to deal with fast-changing 5G and AI solutions.

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