Revolutionizing Advertising: Apple’s New AI Features and Their Impact on Marketers

On Monday, Apple announced some big changes, including AI upgrades to iOS and Siri, branded as “Apple Intelligence” that will undoubtedly be a game changer for advertisers. By using AI to understand what users do every day, who they talk to and how they communicate, Apple is paving the way for ads that are incredibly relevant to each person.

Imagine an ad that changes based on who’s seeing it, what they like, where they are and when they’re seeing it. That’s the kind of personalized, interactive ad that could be possible by tapping into Apple’s new AI tools.

To make the most of this, brands should look into adding AI-powered features to their iPhone and Mac apps using Apple’s updated tools for developers. Things like voice control with Siri or smart suggestions could make apps stand out and get more people using them.


Adapting to an AI-First World

Apple’s AI introduction is a wake-up call for those not thinking about a marketing future that is dominated by smart, personalized experiences. Savvy brands are already switching to an AI-friendly (if not AI-first) way of doing things. For many brands, this means ensuring content is AI-friendly so it can be indexed and served to users making AI-based searches, while more advanced brands are already exploring more advanced solutions.

No doubt Apple’s introduction of AI into its ecosystem will speed along this exploration. But, but here’s the catch: Brands must do all this while still respecting user privacy, which is a big deal for Apple. Being upfront about data sharing, maintaining transparency about data utilization, and using privacy-friendly tactics is a must for brands.


The Shifting Landscape of Paid Search and Display Advertising

As AI becomes the flagship feature of Siri, we may see a decline in traditional paid search as users begin to increasingly rely on AI assistants to answer their questions. This shift could give rise to a new advertising channel, where brands pay to manage what AI says about them.

Moreover, with user interfaces becoming more AI-driven and chat-based (like Apple Vision and Rabbit r1), traditional display advertising will face challenges in the coming decade. Advertisers will need to adapt their marketing strategies to reach consumers effectively in the rapidly evolving digital space.


Keeping Tabs on Who’s Using What

Many of Apple’s new AI tricks will only work on the latest Apple gadgets, so as Apple repositions itself in the marketplace, advertisers need to watch who’s able to see and use these features. It takes roughly 2-3 years for a given version of iOS to be adopted, meaning for the time being, we’ll be straddling the pre- and post-AI worlds simultaneously. Plus, Apple currently holds “just” under one-third of the mobile market.

For now, using a mix of AI-powered and classic ad styles is probably smart to make sure no one gets left out. How fast people flock to Apple’s AI tools will also be a clue for how quickly advertisers should make the switch. Regularly checking in on the adoption rate of this new tech will certainly serve as a meaningful trigger for advertisers looking to consolidate their strategies.


So What Are the Marketing Benefits of Apple’s AI Technology?

While we could speculate over the myriad application areas for marketers, here are some of the primary areas that we should expect to impact early and often:


Hyper-personalized marketing – Apple Intelligence will analyze user data (with user consent) to understand individual preferences and behaviors with even greater precision. Imagine ads that seamlessly integrate into your life, like suggesting a new pair of headphones based on your music listening habits or recommending a fitness tracker tailored to your activity level.

Enhanced targeting and ad placement – By understanding user behavior across Apple devices and services, AI can optimize ad placement within apps and on the App Store. Ads could appear at the most opportune moments, like suggesting a productivity app during your typical work hours.

More relevant and interactive experiences – Picture engaging ad formats that adapt to your responses. AI could personalize product demos or create interactive experiences within ads, keeping you engaged and fostering a deeper connection with the brand.

On-device intelligence – A big focus for Apple seems to be processing AI tasks directly on user devices rather than relying on remote servers (i.e., the cloud). This will make AI features faster, more secure and potentially less reliant on internet connectivity. With embedded on-device intelligence, brands will be able to deliver apps that deliver more hyper-personalized experiences.

Focus on user experience – While Apple Intelligence will be used for targeted advertising, the company might prioritize enhancing the overall user experience rather than bombarding users with intrusive ads. This could lead to a new wave of AI features that are genuinely helpful and improve our daily interactions with technology.

Apple Intelligence User Projections chart
Many of Apple’s new AI tricks will work only on the latest Apple products, so as Apple repositions itself in the marketplace, advertisers need to watch who’s able to see and use these features. It takes roughly two to three years for a given version of iOS to be adopted, so for the time being we’ll be straddling the pre- and post-AI worlds but should expect wide adoption by mid- to late 2026. It’s worth noting that although Apple seems ubiquitous, it currently holds currently holds just over 50% of the U.S. mobile market.