Apple and AI?! AI has become a central battleground for tech giants. Google is aggressively investing in its AI labs like DeepMind and Gemini, Microsoft has become a major player in generative AI with its multi-billion dollar investment in OpenAI, Meta is developing its own Llama language models, and Amazon remains strong in AI infrastructure with Alexa and AWS. Apple? It's there, but... where exactly?
Apple and artificial intelligenceWhile competitors are already integrating generative AI features into their devices and services, Apple is still betting on privacy, local data processing, and careful implementation. AI into its ecosystem. While ChatGPT, Google Bard, and Microsoft's Copilot are already shaping the future of digital assistants, Siri—the assistant most users turn off—seems like a technological dinosaur.
The question is simple: Is Apple truly lagging behind in AI, or is it simply following its tried and tested pattern – entering later but then dominating the market?
Apple and artificial intelligence: Cautious, prudent...too slow?
Apple is no stranger to AI. Back in 2017, it introduced the Neural Engine, a machine learning engine, with the A11 Bionic chip, and since then, AI has been running “under the hood” of iPhones, Macs, and iPads for years. Features like Face ID, Night Mode photography, and auto-correction are all powered by AI.
But the problem is, this isn't the "sexy" AI everyone is talking about.
Meanwhile, competitors have made a leap forward with generative artificial intelligence. Google has integrated Bard or Gemini into Android and its search engine, Microsoft has built Copilot into Office and Windows, Meta is developing the open-source Llama model and AI agents in Messenger and Instagram, and Amazon has upgraded Alexa and is investing in AI services in the cloud.
Apple is on WWDC 2024 Apple has finally unveiled its first generative AI features under the name “Apple Intelligence,” promising improved Siri, automated tasks, and smart message summaries. But most of these features will only be available later, while competitors are already leveraging AI as a powerful sales tool and revenue source.
While Google and Microsoft talk about the “AI revolution,” Apple still emphasizes that AI is merely a tool to improve the user experience. While this is a laudable approach, the question remains – will it be enough to remain competitive?
Investments and strategic partnerships: Apple vs. AI giants
Looking at the numbers, the difference is clear. Microsoft has invested over $13 billion in OpenAI, giving it exclusive access to models like GPT-4. Google has invested billions in DeepMind and its other AI projects, Meta has committed nearly $40 billion to AI development in 2023 alone, and Amazon has invested four billion in Anthropic, one of OpenAI’s main competitors.
And Apple and artificial intelligence?! Apple has been quietly buying AI startups like Xnor.ai, Turi, and Laserlike, but without any high-profile partnerships that would allow it to quickly break through. While Microsoft, Google, and Meta work closely with academia, open source communities, and AI labs, Apple insists on its own development behind the scenes. This is in line with its philosophy of controlling the entire ecosystem, but it also means that the AI revolution is advancing faster than Apple can catch up on its own.
Leadership and Vision: Where is Apple's big AI story?
Tim Cook is a great operational strategist, but he is not an “AI evangelist” like Satya Nadella at Microsoft or Sundar Pichai at Google. While Google calls AI “more important than electricity,” Apple remains reticent, emphasizing that artificial intelligence will be integrated into products “in a thoughtful way.”
The result is that Apple doesn’t look like an AI leader. Without a clear strategy for generative AI, investors are seeing Apple as too hesitant compared to the competition. The stock market is already seeing this: While shares of Microsoft and Nvidia, which are aggressively betting on AI, have risen sharply in 2024, Apple has lost its status as the world’s most valuable company.
Is Apple repeating historical mistakes?
This isn't the first time Apple has missed a technology trend. Smartphones existed before the iPhone, but Apple dominated the market. It was similar with smartwatches - the Apple Watch came late, but now dominates. On the other hand, Apple has never seriously competed in search and the cloud, leaving it to Google and Amazon.
The biggest problem for Apple is that Siri, which was revolutionary when it was introduced in 2011, is now lagging far behind Google Assistant and Alexa. Apple had an advantage, but it squandered it due to slow development. Will the story with generative AI be similar?
What's next? Apple in AI – marathon or missed train?
Apple has three options. The first is to accelerate AI investments, improve Siri, and introduce competing AI services. The second option is to become an AI “integrator” and partner with other companies, such as OpenAI, to incorporate their technology into its devices. which it is already partially doing. The third option is to stay in its comfort zone and continue to make slow improvements, which could weaken its competitive position in the long term.
The year 2025 will be a turning point for Apple. If it fails to present a breakthrough AI vision, it risks remaining a mere manufacturer of great hardware while Microsoft, Google, and others control the future of AI services.
For now, the following applies: Apple is not an AI leader, but it is not out of the game yet. But he'll have to hurry if he doesn't want the AI train to leave him at the station.
