One of the phrases Apple used was “AI for the rest of us”. I love this because I firmly believe we have an opportunity to make interacting with computers simpler and more powerful. I see Apple Intelligence as a big step in this direction. Now you can use Artificial Intelligence in more seamless ways thanks to how Apple is aggregating various AI models at the operating system level.
Apple intelligence Writing Tools
AI Writing Tools available systemwide, is a game-changer. Imagine drafting an email and wanting it to sound more professional. Just activate the toolbar, and it’ll refine your text instantly. Need a creative image for your Keynote presentation? The toolbar can generate one for you effortlessly.
Local Models, Private Cloud Compute, or ChatGPT?
Apple Intelligence smartly decides between local models, Private Cloud Compute, and ChatGPT for your requests. If the local model is sufficient, it handles everything on-device. For more complex tasks, it may opt for Private Cloud Compute (PCC) or suggest ChatGPT. With PCC and ChatGPT, only relevant context is sent to the cloud. Before sending anything to ChatGPT, you have to give explicit permission for each request. 
Priority Notifications
The new focus mode, Priority Notifications, uses AI to minimize distractions. It leverages a local model to learn which notifications are important to you, ensuring you stay focused on what matters most.
Device Compatibility
Apple Intelligence will be available on iPhone 15 Pro and up, iPads and Macs with an M1 or greater. This is a big deal because it might compel me to upgrade despite the fact that I absolutely love the smaller size of my iPhone 12 Mini.
Article updated to clarify there are 3 separate AI model locations that might handle a request. On device, Private Cloud Compute, and ChatGPT. Checkout this interview with Tim Cook: https://www.youtube.com/watch?v=pMX2cQdPubk