Apple Intelligence’s Potential Unintended Privacy Consequences

Newswise — Apple’s focus on privacy with its introduction of Apple Intelligence-powered products including its iPhone 16 lineup “could have significant unintended consequences,” says Associate Professor of Marketing Daniel McCarthy at the University of Maryland’s Robeert H. Smith School of Business.

McCarthy, whose research specialty is the application of leading-edge statistical methodology to contemporary empirical marketing problems, says:

“Apple's stated focus on privacy is ‘on brand’ and consistent with prior policies such as App Tracking Transparency (ATT). Even though the partnership with OpenAI could raise data sharing concerns, I believe that Apple's approach will keep user data private.

“However, my research would suggest that this focus on privacy could have significant unintended consequences. For example, early accounts suggest that Apple's AI solution is not very effective because the ‘engine’ that is powering it is not as powerful and slower than it otherwise could be due to on-device processing, and it has less available data upon which to personalize over time due to data not being shared. There is a risk that Apple's AI solution ends up being a slightly more useful version of Siri. If so, user uptake may be a lot slower than it otherwise would have been.”