Apple confirmed the date of its annual fall event last week — the showcase where the tech giant has historically unveiled its latest products and innovations is set for September 9. This year's event is expected to introduce consumers to Apple's newest hardware, including the iPhone 16. Perhaps more notably, the company may also share the latest developments on Apple Intelligence, its response to the current generative artificial intelligence (AI) boom.

The event, promoted under the slogan "It's Glowtime," follows Apple's Worldwide Developers Conference (WWDC) held in June. At WWDC, Apple first unveiled Apple Intelligence, positioning it as apersonal intelligence systemfor iPhone, iPad, and Mac, which combines generative AI models with personal context to enhance relevance. This announcement, along with the disclosure of a partnership with OpenAI, underscores that the mobile sector is undergoing transformation as AI strategies move from concept to reality.

"I think everyone has been waiting for Apple to enter the game because of the reach they have to such a large user base," said Nicole Greene, vice president and analyst at Gartner. "When you think about the true premise of generative AI, democratization and accessibility are what drive the technology forward."

The rollout of Apple's AI initiatives is likely to change how consumers interact with technology—an influence that is not unfamiliar to the iPhone maker, Greene added. Beyond Apple, many marketers have explored the potential of generative AI this year, whether for everyday tasks like generating social media copy, enhancing e-commerce experiences, or supporting mobile-centric campaigns.

"All our data and research indicate that this is the year of implementation—companies are taking this technology seriously and trying to figure out how it can concretely solve existing challenges or drive the business forward through new opportunities," Greene said.

Amid the excitement, questions remain: What will the current regulatory environment bring? How can companies leverage the technology while maintaining brand safety?What experiences will already hesitant consumersvalue?

Social Media Growth Potential

In mobile marketing, social media remains thedominant channeland is likely to be influenced by the rise of AI. According to industry forecasts, social ad spending this year willapproach $242 billion. Correspondingly, key platforms like TikTok and Pinterest have followed the AI trend to differentiate themselves. In recent earnings reports, Meta has continuously updated its AI capabilities, stating that these capabilities are improving marketing performance.

For many advertisers, AI use cases on social media mainly revolve around copy generation and creative ideation, while features like image generation are less common, Greene said. Jourdan Gariepy, vice president of optimization and innovation at Kepler, noted that many marketers are testing the technology on a small scale and are cautious about AI adoption. These tests aim to maintain human review to ensure accuracy, an approach this executive expects will not change.

"I think marketing teams will always need to check whether what we publish meets brand guidelines," Gariepy said.

"We found that adding these extra modifications to images actually increased favorability by one-fifth."

— Michael Shaughnessy, Chief Operating Officer at Kargo

Using AI to generate social copy versus generating images or videos (platforms like TikTok have begun requiringdisclaimersfor AI-generated content) also presents transparency challenges, Greene said, noting that labeling images or videos as created by generative AI is easier than for copy.

AI has also proven useful in creating multiple versions of assets, such as changing the placement of a call-to-action or adjusting for regional differences to provide a more personalized experience, said Michael Shaughnessy, COO of Kargo.

"We found that adding these extra modifications to images actually increased favorability by one-fifth, or 20%," Shaughnessy said.

Many marketers have already used AI to enhance their mobile campaigns, from Sprite to Vitaminwater to Reebok. For Entropico, a global creative company that has worked with brands like Google and Samsung, AI is most commonly used in pre-production and ideation stages, unless brands specifically use the technology to create innovative campaigns, said Joey Hunter, the company's chief creative officer. The executive emphasized the technology's limitations in matching human creative value.

"I like a bit of Bob Ross-style happy accidents, and you can't get those if you just run a prompt and let it output," Hunter said.

AI in Mobile Commerce and Apps

Mobile marketers may also use AI to enhance their mobile commerce capabilities. According to eMarketer data, US retail sales this year willapproach $560 billion, accounting for 44.6% of total US retail e-commerce sales. One application of generative AI in e-commerce is understanding the bridge between product descriptions and the language consumers use to search for those products, Gariepy said.

However, some AI applications may pose challenges to web experiences. For example, the technology could reduce traffic to brand websites, thereby shrinking their retargeting audiences, Gariepy said. Google's AI Overview feature, which uses generative AI to provide summaries at the top of search results, has raised concerns about traffic declines.

As AI usage grows, Gariepy believes that focusing more on overall user experience will be key to understanding target consumer behavior, especially as cross-channel shopping experiences become increasingly common.

Mobile ad spending is expected tosurpass $200 billionthis year, with apps accounting for 81.9%. According to AppsFlyer data, 27% of app marketers rank adopting AI solutions as their top priority for 2024, while 25% rank it as their biggest challenge.

"Brands still need to be cautious about app investments because the apps people already have may become more useful."

— Nicole Greene, Vice President and Analyst at Gartner

Generative AI can present significant opportunities for app marketers, Greene said, especially in assisting with code writing to provide more personalized experiences and smoother update processes. In recent years, many brands have sought to partner with apps rather than build their own, recognizing the difficulty of securing valuable placement on consumers' mobile devices. With AI, brands may be more motivated to create their own apps.

"All our research shows that it's very difficult to get users to leave a channel," Greene said. "So, as a brand, if your goal is to get users to buy something, and they can do it seamlessly through AI within your app, then having an app makes a lot of sense."

It's also worth noting that existing apps can benefit from the technology, the executive continued.

"Brands still need to be cautious about app investments because the apps people already have may become more useful," she said.

Regulatory Uncertainty Heightens Hesitation

Although AI has sparked curiosity among mobile marketers, uncertainties remain in areas such as brand safety and regulatory requirements.The EU AI Act takes a risk-based approach, while executives in the US are preparing for potentially costly safeguards involving data privacy and security.

There are also cross-industry communities like theContent Authenticity Initiative, which aim to make content authenticity and transparency accessible and scalable, which Greene called a "huge step forward" in governance. However, to keep pace with rapid technological advances, she expects some responsibility to be shifted.

"I think responsibility is starting to shift to brands, and frankly, regulators are looking at brands and saying: 'You need to guide responsible use; we can't really control this yet because AI is ahead of us,'" Greene said. "We don't want to repeat the social media scenario of becoming the 'Wild West.'"

Many companies have begun to propose guidelines to protect brand safety in AI use. To understand how the telecom industry views generative AI, global strategy consultancy Altman Solon recently partnered with Amazon Web Services (AWS) to survey over 100 senior business leaders from tier-1 communications service providers (CSPs) worldwide.

"A fairly clear message across all CSP segments is that all telecom companies believe they really need to work on governance," said Priya Mehra, director at Altman Solon. "Issues of governance, data security, and data-related risks have become more important over the past year."

Through its research, Altman Solon created a framework emphasizing people, processes, and technology, which it considers key to implementing generative AI governance. Although the report targets the telecom industry, the recommendations it contains—such as building generative AI governance teams and creating AI model repositories—also apply to the broader marketing community in most cases, Mehra said.

Beyond brand safety concerns, data security around AI remains a top priority. According to CMO Council and KPMG data, 84% of chief marketing officers believe AI and machine learning could impact their data security.

Stimulating Demand

Unresolved questions also pose challenges for mobile marketing vendors pitching various AI capabilities to brands, said Thomas Husson, vice president and principal analyst at Forrester, in an email comment. As AI has become a buzzword, some marketers are beginning to experience fatigue.

"Most players are still figuring out which generative AI marketing use cases to scale among the many trials, and once they are ready, they will choose vendors with truly robust AI roadmaps that can integrate with their broader technology systems," Husson said.

"One thing I discuss with marketers is to look at your biggest challenges and opportunities and ask: 'Can generative AI help solve this?' If not, move on to the next."

— Nicole Greene, Vice President and Analyst at Gartner

While the typical advice for marketers is to stay customer-centric, consumers have not yet realized the potential capabilities of AI, Greene explained.

"82% of US consumers believe generative AI will not bring benefits to society," Greene said. "So, how does that intersect with the proportion of people who own mobile phones?"

Currently, the pursuit of productivity resonates most with marketers, the executive continued. Additionally, while AI can be seen as a way to deliver more personalized experiences to consumers and help collect valuable first-party data, Greene emphasized that data should be the first step in the equation.

"If your data isn't ready, you're not ready for AI," Greene said. "You really need a clear understanding of what customers want to better grasp their intent and, obviously, to profile potential customers."

The executive believes that while AI is a valuable asset in a marketer's toolkit, the technology "won't solve all problems—it's not magic dust." As curiosity continues, brands should not be afraid to analyze how AI can help address their difficulties, she continued, as long as they also know when to let go.

"One thing I discuss with marketers is to look at your biggest challenges and opportunities and ask: 'Can generative AI help solve this?' If not, move on to the next," Greene said. "Don't force it, because generative AI won't solve all marketing problems, but it can do a lot."