Apple expects AI to permeate "virtually everything we do" in a reflection of a broader industry trend.
Cook pointed out that Apple had already applied AI solutions to some iPhone and Apple Watch features like fall detection, adding that "these things literally save people's lives."
Earlier this month, Apple launched a selection of audiobooks narrated by AI-generated voices and plans to incorporate AI further into the company.
"It is a major focus of ours. It's incredible in terms of how it can enrich customers' lives," Cook said.
He said Apple sees "an enormous potential in this space to affect virtually everything we do," adding that "it will affect every product in every service that we have."
Microsoft and Google have also previously said they would refocus on AI in a strategic shift affecting the wider tech industry.
Skyrocketing interest in AI is a way for major tech companies to reassure investors of their future prospects.
Despite Apple's revenue being forecasted to fall for a second quarter in a row, the company's CEO was optimistic about the expected rebound of iPhone sales as post-COVID production in China returned to normal.
"Production is now back where we want it to be," Cook said.
Still, he said Apple was not immune to "unprecedented" economic challenges ranging from inflation to the war in Ukraine.
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