Although this is very reminiscent of the Lens in Google’s Pixel phones (or ChatGPT’s multimodal capabilities) it does point towards a future use of AI that is more real-time, interactive, and situated in real-world environments.
In the extension, Apple Intelligence and the Reduce mode could evolve into so-called “context-aware computing”, which has been envisioned and demonstrated in research projects since the 1990s, but for the most part has not yet become robust enough to be a real product category.