Apple’s AI strategy has suffered from leadership hesitancy and competing internal visions, delaying their competitive response to generative AI. Bloomberg’s Mark Gurman reports that Apple software chief Craig Federighi was “reluctant” to invest heavily in AI technology, viewing it as a distraction rather than a core capability. This resistance, coupled with operational constraints faced by AI chief John Giannandrea, has significantly hampered Apple’s ability to keep pace with industry innovations in artificial intelligence.
The big picture: Apple’s leadership was caught unprepared by the generative AI revolution, with key executives failing to recognize the technology’s strategic importance.
- Craig Federighi reportedly viewed AI investments as taking resources away from other priorities without clear payoff, a sentiment shared by other Apple leaders.
- The company’s product development approach clashed fundamentally with AI innovation, as described by one executive: “In the world of AI, you really don’t know what the product is until you’ve done the investment. That’s not how Apple is wired.”
What they’re saying: Internal discord within Apple’s leadership team prevented the company from making necessary AI investments.
- While some executives were “convinced” AI would be “revolutionary,” their arguments reportedly “fell on deaf ears” with Federighi.
- John Giannandrea’s efforts to increase AI spending at Apple were “often stymied,” limiting his effectiveness as AI chief.
WWDC expectations: Apple is unlikely to focus heavily on Siri upgrades at next month’s Worldwide Developers Conference, signaling continued challenges with its voice assistant.
- Significant Siri improvements are “still months away from shipping” and won’t receive substantial attention at the event.
- The company plans to add AI capabilities to more applications and introduce an AI-powered battery optimization tool.
Looking ahead: Apple is reshaping its AI strategy while distancing its troubled Siri assistant from newer AI initiatives.
- The company is working on “LLM Siri” infrastructure while preparing to launch “Project Mulberry,” a virtual health coach.
- EU residents will gain the option to replace Siri with third-party alternatives, reflecting regulatory pressure.
- Apple plans to stop announcing features months before their actual launch, suggesting a more cautious approach to product announcements.
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