Apple’s first big AI innovation in 2024 may be… smarter ads

While we’re all waiting for Apple’s big push into generative AI in iOS 18, a new report claims Apple may have something far less exciting in mind than chatbots and image editing: ads.

According to a Business Insider post, Apple is “taking a cue from Google and Meta” by testing a new AI-powered ad system that “automatically decides where to place ads within its App Store.” The report says Apple has already informed advertisers of the pilot program, which is designed to help Apple “learn how it can improve the performance of its Apple Search Ads,” and is likely to introduce the new initiative in the coming months.

Apple is expected to unveil several AI initiatives during WWDC in June, though it’s unlikely this program will be among them.

The program Business Insider describes is similar to Google’s Performance Max and Meta’s Advantage+ campaigns. On those platforms, Google and Meta simplify the ad-buying process by automatically determining the campaign that best fits a client’s needs after a simple setup process. The new process, Business Insider explains, will let advertisers enter their budget target metrics, audiences, and countries they want to reach. Then Apple’s AI-powered algorithm will decide where best to place ads within the search result, today tab, or app listings.

The program will reportedly be limited to App Store search results, though it may extend to other apps, including Maps and Sports. According to research firm Omdia, Apple’s ad business is on track to make some $7 billion in revenue this year, up from $6 billion in 2023 and $4 billion in 2022. 

Author: Michael Simon, Executive Editor