It supports Apple Intelligence, all 8gb iPhones and iPads support Apple Intelligence and the promo materials for this Macbook Neo say it supports Apple Intelligence as well.
akmarinov said their M1 doesn't support apple intelligence but they still think it's plenty usable; jasongill thought akmarinov was referring to the Neo and responded that the Macbook Neo does in fact support Apple intelligence; and I clarified what I think akmarinov intended to say.
I stand corrected.