Apple has unveiled PICO, a groundbreaking AI-driven image compression technology that reduces file sizes by two-thirds while maintaining visual quality. PICO, which stands for Perceptual Image Codec, focuses on optimizing images for human visual perception rather than traditional mathematical metrics like PSNR. This innovation allows PICO to achieve file sizes that are only 30% to 43% of those required by existing standards such as AV1, AV2, and JPEG AI. PICO's advancements include a one-shot context model for faster entropy encoding, TextFidelityLoss to preserve text integrity, and TilingArtifactLoss to ensure color consistency across image tiles. Tested on an iPhone 17 Pro Max, PICO encodes a 12MP photo in 230 milliseconds and decodes it in 150 milliseconds, outperforming many current ML codecs. Despite its limitations with synthetic images, PICO marks a significant step towards integrating perceptual compression into consumer devices.