Why Apple Has a Big AI Problem
Inside Apple’s struggle to stay ahead in the era of artificial intelligence
A recent Apple ad, now infamous, showcased actor Bella Ramsey asking Siri to recall a contact from a meeting months ago. The assistant effortlessly provided the name. The problem? That version of Siri doesn’t exist. Originally slated for a 2025 release, this advanced conversational AI is now delayed until at least spring 2026. This misstep, which led to a lawsuit and the ad’s removal, exposed a troubling reality: the company that revolutionized personal computing is losing ground in the artificial intelligence race.
For a company that prides itself on delivering polished, intuitive technology, the struggles with AI represent a significant challenge. The delayed promises and underwhelming performance of Apple Intelligence have left many wondering if Apple has missed the boat on the biggest technological shift since the smartphone. This is the story of how the titan of tech is fighting to stay on top, battling internal indecision, a cautious culture, and fierce competition in a race it can’t afford to lose.
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A Head Start Squandered
It’s easy to forget that Apple was once a pioneer in this space. When it acquired Siri in 2010 and integrated it into the iPhone in 2011, there was nothing else like it on the market. It was a glimpse into a future where you could simply talk to your device. However, this early lead didn’t last. Competitors like Amazon with Alexa and Google with its Assistant soon entered the market, and within a few years, their offerings felt far more advanced and capable.
The core of the issue wasn’t a lack of talent. In a major move, Apple poached John Giannandrea, one of Google’s top AI executives, to unify all AI initiatives under one roof. The hire sparked excitement and hope that Apple would finally pour its resources into building a truly next-generation assistant. Giannandrea’s team attempted to build a lighter, faster Siri, but the project was eventually scrapped. While Apple was reorganizing, rivals were racing ahead, developing the large language models (LLMs) that form the foundation of modern generative AI.
Then, ChatGPT arrived. OpenAI’s release in late 2022 changed everything. It demonstrated the immense power of LLMs to consumers, and competitors quickly moved to integrate similar technology. Apple’s software engineering chief, Craig Federighi, recognized it as a game-changer. After crash courses with OpenAI and Anthropic, he put his teams to work on a new, system-wide approach to AI.
The Disappointment of Apple Intelligence
The culmination of this effort was revealed at the 2024 Worldwide Developers Conference: Apple Intelligence. Pitched as “AI for the rest of us”—a deliberate echo of the “computer for the rest of us” slogan used for the original Macintosh—it promised to make Apple’s products more useful and delightful. Features like text summarization, writing assistance, notification prioritization, and “Genmojis” were impressive on stage.
However, the reality fell short of the hype. When the iPhone 16 launched, billed as the first device built for Apple Intelligence, the system wasn’t even available. It arrived a month and a half later, but the most anticipated conversational Siri features were still missing. For a company defined by flawless execution, this was a major black eye. The delayed and incomplete rollout has been a point of concern for investors, contributing to the stock’s weaker performance compared to other tech giants who are all-in on AI.
The challenge for Apple is that AI is no longer a niche feature. It is rapidly becoming the core of the user experience. The world is moving toward an ecosystem of AI-driven devices, and failure to lead in this area could threaten the iPhone’s long-standing dominance, a product line that accounts for over half of Apple’s revenue.
The Hunt for a Foundation Model
At the heart of Apple’s struggle is the foundation model—the massive, general-purpose AI engine that powers tools like ChatGPT. Building these models is incredibly expensive and time-consuming. It requires immense computational power, vast datasets for training, and a culture of rapid, iterative development. Ironically, some of Apple’s most cherished principles have become obstacles.
The company’s legendary fiscal prudence has made it hesitant to invest the tens of billions of dollars per quarter that rivals like Microsoft and Google are pouring into AI infrastructure without a guaranteed payoff. This is reflected in capital expenditures, which are far lower than its competitors who are building out AI services for others.
Furthermore, Apple’s staunch commitment to user privacy, while a key selling point, limits its ability to train its models. By championing on-device processing, Apple keeps user data private but restricts its models to the processing power of an iPhone. This is sufficient for simple tasks like summarizing an email, but more advanced requests must be sent to its “Private Cloud Compute” servers. Unlike Google, Apple has historically avoided using its massive trove of user interaction data for training its AI systems.
Recognizing these challenges, Apple is exploring a pragmatic solution: partnerships. The company has held talks with Google, OpenAI, and Anthropic about licensing their advanced foundation models. Such a move would allow Apple to marry its world-class user interface design and hardware integration with the cutting-edge AI technology of a partner. For the consumer, this could be the perfect combination, delivering a powerful and intuitive AI experience without them needing to know or care who built the underlying engine.
The Path to Redemption
Apple is not standing still. The company is working on several projects to rescue Siri and catch up in the AI race. This includes a completely rebuilt engine, a more conversational assistant, a refreshed visual interface, and even its own AI-powered web search tool. The ultimate goal is to transform Siri into an “always-on life copilot” that can be trusted to get things done on your behalf.
Tim Cook has acknowledged the scale of the moment, telling staff that the AI revolution is as big as the internet and the smartphone. Behind the scenes, the company is developing a suite of new products to help it regain its footing. The tech landscape is littered with giants who failed to adapt—Nokia and Blackberry serve as stark reminders. If Apple doesn’t get its AI strategy right, it risks being overtaken by the “next Apple.”
The coming months will be critical. Whether through a groundbreaking internal development or a strategic partnership, Apple must deliver an AI experience that is not just functional, but magical. The company that taught us to expect more from our technology now faces the ultimate test: proving it can still define the future, not just react to it.
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