Can I Help You?
Yes, I’m looking for product market fit
Another year, another iPhone
Apple had its annual fall event on Monday and the people were not entertained. They added a camera button and some colors. While the internet complained about the lack of innovation, I think we’re underestimating the introduction of Apple Intelligence. This will be the first time many users will begin interacting with an LLM regularly. Although ChatGPT has been around now for almost 2 years, only 23% of U.S. adults say they have ever used it. Most of my friends say they’ve only used it a few times. Rarely do I meet someone, outside of tech, who uses it regularly.
AI has a case of imposter syndrome. Despite breakthroughs in large language models, image generation, and automation, it hasn't fully connected with the average consumer in a way that feels indispensable. We’re constantly bombarded with headlines about companies deploying AI into their workflow to increase efficiency, code for cost cutting. Meanwhile, the news only talks about how unsafe these models are. Many of the tools available today are still seen as experimental or niche, often catering to developers, researchers, or specialized industries. This disconnect has resulted in a period of stagnation, where the innovation cycle is advancing, but the practical, everyday use of AI hasn't found widespread footing among consumers. The only consumer products out there are chatbots, which are too vague and there’s a learning curve. Users have to figure out how to prompt it correctly, and reason with the bot to understand why it gets things wrong (Pro tip: talk to it like it’s a child).
Anthropic, one of OpenAI’s competitors, is aware of this gap in product market fit. They recently hired Mike Krieger, the co-founder of Instagram, as its Chief Product Officer. Krieger understands that although the technology is groundbreaking, it hasn’t been packaged well. The chatbot is like the internet browser, where you have access to everything but where do you even start?
If you’re an “anything box,” then everything is potentially either under threat or problematic. I think there’s real value in saying, “All right, what are the things we want to be known to be good for?” — Mike Krieger on Decoder Podcast
While I do believe we’re at the cusp of a new tech revolution, it’s still very, very early. Consumers are looking for AI that can simplify their routines, whether it's by integrating into their homes more naturally, making health decisions easier, or reshaping how they interact with their finances and work. The market's demand for more human-centered design will drive AI development toward solutions that feel intuitive, trustworthy, and valuable — and that’s where Apple Intelligence will fill the gap.
Market Wanted
When asked if the current AI boom mimics the internet boom, Marc Andreessen disagreed and said “the internet was a network, whereas AI is a computer.” In the early days of personal computing, many industry leaders doubted the widespread appeal of computers for everyday consumers. In 1977, Ken Olsen, founder of Digital Equipment Corporation, famously stated, "There is no reason for any individual to have a computer in his home." Early computers were so complex and expensive that they couldn’t even fathom what a consumer market would look like. Then came Apple.
The Apple I, released in 1976, marked the beginning of personal computing by packaging a more compact, affordable computer aimed at consumers rather than experts. The real breakthrough came with the Apple II in 1977, which was marketed as a consumer-friendly device with a plastic case, keyboard, and color graphics, making it versatile for a range of applications. The Apple II fostered a software ecosystem, with programs like VisiCalc transforming it from a hobbyist’s machine into a practical business tool.
Before the Apple I, computers were largely seen as tools for government, academia, or large corporations. They were complex and costly, with little appeal for the average person — sound familiar? By showing that personal computers could solve real consumer problems, Apple created the market for personal computing—a role Apple Intelligence could play in making AI indispensable to everyday users today.
Setting the Standard
Apple Intelligence has been marketed as focusing on the user with 4 main features: express yourself, relive memories, prioritize and focus, and get things done. It essentially expands Siri into what it’s always tried to be, your very own assistant. They’ve also made it a point to assure users that it’s safe. The models run on-device for simple tasks. For more complex tasks, they’ve introduced Private Cloud Compute, which transmits your request to the cloud, keeping your data safe throughout the entire journey. Although many users, including myself sometimes, don’t really worry as much as they should about data breaches, this is a smart move since a lot of what we hear about AI in the news is how dangerous it could be.
Apple Intelligence is not just setting a new standard for AI in consumer products, but it’s also opening up AI to the entire app ecosystem, similar to how the Apple II fostered a software ecosystem and the iPhone created the app ecosystem. By integrating AI into a familiar environment and making it accessible to developers and users alike, Apple is positioning itself to guide AI adoption on a massive scale. What comes next will be the true test—whether Apple Intelligence can unlock product market fit for AI among consumers. The success of this technology won’t be measured by innovation alone, but by how seamlessly it can integrate into everyday tasks and solve real-world problems in ways that feel seamless and natural. This evolution could determine the future of consumer AI. I’m sure they’ll release an ad soon showcasing this seamless use, but only time will tell.
Thank you
You don’t know the market until you find a market. As always, if you have any questions, want more explanations, or strongly disagree, comment below, follow me on Twitter (X), follow me on Instagram, or shoot me an email.
Disclaimer: These views are my own, and do not necessarily reflect the views of any organization with which I am affiliated with. This article is written with AI assistance.