According to reports, Apple is releasing a free software update to inject its first dose of artificial intelligence into its iPhone 16 lineup as the trendsetting company tries to catch up with technology's latest craze.

The upgrade to the iOS 18 operating system arrived more than a month after four iPhone 16 models equipped with the special computer chip needed to power the AI features went on sale for $800 to $1,200.

Last year's premium models—the iPhone 15 Pro and iPhone 15 Pro Max—also possess a processor that will enable AI technology after the software update is installed.

Apple iPad and Mac computers can also be updated with this software.

AI software for the iPhone will not be available outside the U.S. until next year. Apple has been testing its AI software on iPhone owners for the past five weeks.

Other AI features included in this software update will handle a variety of writing and proofreading tasks and summarize the content of e-mails and other documents; AI will also provide a variety of editing tools to change the look of photos and make older photos easier to find.

Future software updates will also add the ability to create customized emojis on the fly and call up other fancy images upon request. Apple also plans to eventually allow its AI suite to enlist the help of OpenAI's ChatGPT whenever the user wants.

Most of the AI features introduced by Apple on Monday are already available on Android-based smartphones released earlier this year by Samsung and Google.

To differentiate itself from the early leaders in AI, the iPhone's suite of new technologies is being marketed as ‘Apple Intelligence.’ Apple also promises that its AI capabilities will protect iPhone owners' privacy in a much better way by running the technology on the device or centralizing it in a fortress-like data center if some requests need to be handled remotely.

Since most iPhones in use around the world today do not have the computer chips required for Apple's AI, the technology is expected to continue to drive significant demand for new models through the holiday season and into next year.

This is the main reason why Apple's stock price has surged 18 percent since the Cupertino, California-based company teased its AI strategy at a conference in early June. The spike has increased Apple's market value by about $500 billion, bringing it closer to becoming the first U.S. Company to become a $4 trillion company.