Apple is enhancing its iPhone 16 lineup with a free software update that introduces artificial intelligence features to the popular smartphone. This update is a strategic move for Apple as it seeks to keep pace with the rapidly evolving technological landscape.

The iOS 18 upgrade will be rolled out beginning Monday, following the release of four new iPhone 16 models priced between $800 and $1,200. Previous models, including the iPhone 15 Pro, will also benefit from the new AI capabilities once the update is installed.

In addition to the iPhone, recent versions of Apple’s iPad and Mac computers will be compatible with this software upgrade. However, users outside the U.S. will have to wait until next year for AI features to be available.

Apple has spent weeks testing the AI features with selected users to fine-tune its performance. This update aims to significantly improve the functionality of Siri, Apple’s virtual assistant, transitioning it into a more responsive and conversational tool.

These advancements promise to enhance Siri’s task management and reduce confusion while operating. However, immediate integration with third-party apps is not expected until a later software update.

The new update also includes a variety of tools for writing and editing, such as email summarization and photo editing functionalities. Future updates are expected to incorporate more advanced AI features, including personalized emoji creation and collaboration with OpenAI’s ChatGPT.

While many of these enhancements are already available on Android platforms, Apple is marketing this unique AI suite as ‘Apple Intelligence,’ emphasizing user privacy by ensuring that most processing occurs on-device.

The anticipation surrounding these AI capabilities is expected to drive significant demand for new iPhone models this holiday season, especially among those with older devices lacking the necessary hardware for these features. Apple’s stock has surged by 18% since unveiling its AI strategy in June, significantly boosting its market value as it approaches a $4 trillion valuation.

Investors will gain insight into the performance of the iPhone 16 when Apple releases its quarterly financial reports for July to September, coinciding with the initial sales of the updated models. Data from IDC indicates a 3.5% rise in iPhone shipments during this period, reinforcing the positive reception of Apple’s latest offerings in a competitive market.

As consumers consider upgrading their devices to access the latest technology, the question remains whether these AI enhancements will entice users to invest in the latest iPhone models.