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OpenAI’s Sam Altman enters App Store battle with significant ground to cover

In this post:

  • ChatGPT’s new mini-apps for Uber, OpenTable, and others are buggy and often redirect users back to regular phone apps.
  • Sam Altman identifies Apple as his main competitor and is developing devices with ex-Apple designer Jony Ive to potentially replace the iPhone.
  • Only Instacart works smoothly, thanks to OpenAI hiring Instacart’s former CEO, who facilitated the integration.

ChatGPT is trying to become more than just a place to ask questions. The company behind it wants to turn the chatbot into something that could challenge how people use their iPhones.

OpenAI rolled out a new feature this fall that lets ChatGPT’s more than 800 million users do things like order groceries through Instacart, make music playlists on Spotify, or search for hiking trails on AllTrails. Instead of switching between different apps on a phone, people can now handle these tasks by typing into the chatbot.

This could mark the beginning of a big change in how people interact with technology. Rather than tapping through various applications, users might simply tell an AI assistant what they need done. For Apple, which has built a business around its tightly controlled app ecosystem, this represents a potential threat.

But Apple probably doesn’t need to worry just yet. The Wall Street Journal revealed that OpenAI’s app experiment feels a lot like the early days of ChatGPT itself, occasionally impressive, but often broken. While Instacart performed without issues, most other applications could only handle simple questions. Failed commands and confusing interactions happened frequently.

Altman says Apple, not Google, is the real competition

During a December interview with reporters, Sam Altman, OpenAI’s leader, said people spend too much energy comparing ChatGPT to Google’s Gemini chatbot. He identified Apple as his real competition, and the company’s plans back up that statement.

ChatGPT is gradually transforming into something that resembles an operating system. OpenAI is also working with Jony Ive, the former Apple designer, to build a series of devices. Altman said he wants one of them to eventually take the place of the iPhone.

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Gil Luria, who studies technology companies for D.A. Davidson, explained that whoever controls how people access their favorite online services essentially owns a valuable piece of digital real estate. Right now, that’s Apple, and the company charges developers significant fees for access. As more people start their online activities by talking to a chatbot, OpenAI gains ground, according to Luria.

A spokesperson for OpenAI said the company purposely releases new products early so both users and developers can figure out how they work. She noted that OpenAI doesn’t wait around for everything to be perfect. Instead, the company makes rapid improvements through regular updates.

The Journal’s tests found that using Uber through ChatGPT took longer than just opening the iPhone app. When asked to “use the Uber app,” ChatGPT responded that it “can’t directly access the Uber app.” Users need to know they should start their request with “@uber” and word it exactly right. An Uber spokesperson called the ChatGPT version a test project and said the company is trying different approaches to figure out what works best for customers.

Similarly, when the Journal tried using ChatGPT to make a reservation through OpenTable, it generated error messages. Booking a table directly on OpenTable’s website only took a few seconds.

The Journal also asked ChatGPT to use Tripadvisor for finding an affordable ski trip. Maps appeared on the screen for 30 seconds before error messages popped up. “Tripadvisor is being a little useless,” ChatGPT admitted, then filled in an answer using general web search results.

Representatives from OpenTable and TripAdvisor said the secret to making their apps work properly is knowing what they can do and asking the chatbot in the right way. 

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But the whole point of linking a chatbot to apps should be to make tasks simpler, or to let AI handle them completely. Adding more steps works against that goal.

One app works perfectly, and there’s a reason why

Instacart provided one of the better experiences with ChatGPT. In one test, ChatGPT put together a week’s worth of meals for a vegetarian family and correctly loaded a Costco shopping cart with every ingredient needed. A checkout button goes straight to a user’s account on Instacart’s website, where payment and delivery instructions can be completed.

Anirban Kundu, Instacart’s technology chief, remembered in an interview how OpenAI’s first plan wouldn’t have worked. The AI company wanted Instacart to hand over inventory information so ChatGPT could figure out grocery orders entirely on its own. But prices and stock for fresh food can shift every hour, so Instacart wanted the chatbot to check its servers for current information.

When Simo joined OpenAI, her new employer agreed to what her former employer wanted, Kundu said. The Instacart team set up a workspace at OpenAI’s office, sharing a room and a messaging channel with their OpenAI colleagues while they worked through several versions of the connection over three months, according to Kundu.

More partnerships like the one with Instacart should concern Apple. For now, though, opening a regular iPhone app remains the easier choice.

 

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