Apple's AI Struggles: Falling Behind in the Race Despite High-Profile Hires

Why Apple Still Hasn't Cracked AI

Insiders say continued failure to get artificial intelligence right threatens everything from the iPhone's dominance to plans for robots and other futuristic products. Back in 2018 it looked like Apple Inc.'s artificial intelligence efforts were finally getting on track. Early that year, Craig Federighi, Apple's software chief, gathered his senior staff and announced a blockbuster hire: The company had just poached John Giannandrea from Google to be its head of AI. JG, as he's known in the industry, had been running Google's search and AI groups. Under his leadership, teams were deploying cutting-edge AI technology in Photos, Translate and Gmail -- work that, along with the 2014 acquisition of the pioneering British company DeepMind, had given Google a reputation as a leader in AI. To Apple's leadership, the Giannandrea hire wasn't just a coup at the expense of their fiercest rival. It was also, they hoped, the start of the company's transformation into an AI powerhouse. Just before the death of co-founder Steve Jobs in 2011, Apple had unveiled its voice assistant, Siri. At first, Siri felt like something out of science fiction -- once again, Apple had taken a futuristic computing concept and turned it into a mainstream product. But within a few years, Google, Amazon.com Inc. and other competitors had introduced voice assistants that felt far more advanced, while Apple's struggled with basic comprehension and commands.

'Apple Needs to Get a Lot Faster, Be Less Afraid to Launch Products,' Bloomberg Reports | AIM

In a podcast, journalist Mark Gurman discussed how Apple's slow AI growth is due to Siri's limitations, delayed AI features, and internal restructuring. Despite Apple's rapid evolution in AI, the company has struggled to be part of the AI race with its competitors like OpenAI, Google and Microsoft, according to the Bloomberg Big Take podcast titled 'Apple has an AI Problem'. Apple's virtual assistant, Siri, has not delivered the company's promised features. Bloomberg journalist Mark Gurman pointed out that the company advertised overhauling its voice assistant, but these features are still malfunctioning. He said there is a "complete disconnect between Apple Engineering and Apple Marketing". Subsequently, Apple took the Siri ad down, which led to customers filing lawsuits for false advertising of the product. Gurman has previously reported that Apple is developing a project it refers to internally as 'LLM Siri', a revamped and generative AI iteration of the company's digital assistant. However, the company's earlier strategy of combining the assistant with the current Siri has proven ineffective. The Bloomberg report also mentioned that Apple offers writing tools to summarise text and synthesise text into bullet points, but the generative AI to create something uses tools like OpenAI and ChatGPT, which happen to be integrated into iOS 18. "What we have today is a far cry from the vision Apple presented. And it's an even farther cry from what you're seeing from competitors," Gurman said in the podcast. "Apple needs to get a lot faster. They need to get a little messier. They need to make bolder bets. They need to be less afraid to launch things. They need to go back to that ethos of move fast and break things," he concluded. In response to the delayed implementation of AI features in its products, Apple undertook major decisions in its AI strategy. According to the podcast, Apple software chief Craig Federighi hesitated to invest heavily in AI. An anonymous Apple executive also told Gurman that one cannot tell what the product will be like until investments are made, which meant that the company did not buy expensive GPUs and did not have enough of them to keep up with the competitors. John Giannandrea, Apple's head of AI, believed people were not interested in AI chatbots. He informed his team that customers often preferred disabling features like ChatGPT. "He did a lot of analysis of what features people were using and not using in Siri, and proposed killing a lot of those features," Gurman said. According to Bloomberg, some employees attribute challenges to decisions made by specific executives, while others see deeper issues. Apple's success has historically relied on in-house technologies, like multitouch for the iPhone and advanced chips for newer devices, but this approach hasn't worked with AI.

Why Is Apple Still Behind On AI? Expert Dissects Reasons Behind iPhone Maker Lagging Likes Of Microsoft And Amazon Despite Poaching Google's AI Chief - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Seven years ago, Apple Inc. AAPL poached Alphabet Inc. GOOG GOOGL-owned Google's AI chief John Giannandrea. However, the tech giant is still struggling to catch up in the artificial intelligence race. What Happened: In 2018, Giannandrea's arrival at Apple was seen as a turning point, with executives hoping to revamp Siri and build a foundation for future AI products. However, today the positive wave Giannandrea brought has dissipated as Apple continues to fall behind rivals like OpenAI, Microsoft Corporation MSFT and Amazon.com, Inc. AMZN, according to Bloomberg Businessweek. See Also: Tim Cook's Apple TV+ Cameo Rejected By Seth Rogen, Opts For Netflix's Ted Sarandos Instead: 'We Said No' Last year at the WWDC, Apple promised a major overhaul of its voice assistant. However, this has been repeatedly delayed with many of the promised features still not functioning properly. Eddy Cue, a senior Apple executive, reportedly told AI could do what iPhone did to Nokia's business. Last month, during his testimony in a DOJ case against Alphabet, Cue said that iPhones could lose relevance over the next 10 years: "As crazy as that sounds," the report noted. However, during Apple's earnings call in May, CEO Tim Cook defended the slow progress, saying Apple Intelligence features simply need more time to meet the company's quality standards. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. So, Why Is Apple Still Behind? As per the report, which cited multiple employees and people close to the company, much of the blame has been put on Giannandrea, who, according to the sources, did not fight for adequate funding. Some also said that the ex-Google executive lacked a sense of urgency. But, Giannandrea reportedly thinks that the blame should be with marketing and advertising teams for hyping unfinished projects. The acquisition of a lower number of GPUs than its competitors, its long-standing commitment to privacy and the tendency to perfect a feature before launching also hindered the company's progress in the AI race, the report said. Why It's Important: Apple is now working on iOS 19, which will reported pack significant AI updates, including battery optimization and a virtual health coach. Apple is also planning to split Apple Intelligence from Siri to escape the voice assistant's reputation, the report added, citing sources. The tech giant also reportedly intends to let Siri access the open web, just like OpenAI's ChatGPT. Price Action: As per Benzinga Pro, Apple shares have declined by 1.58% in after-hours trading. Benzinga Edge Stock Rankings gave Apple a growth score of 45.98%, reflecting strong market momentum. Click here to see how it compares to other leading stocks such as Alphabet, Microsoft and Amazon. Photo Courtesy: Prathmesh T on Shutterstock.com Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Bob Iger Admits Marvel Lost Focus By Making Too Much Content, Saying 'Quantity Does Not Necessarily Beget Quality' -- Here's What Disney Plans To Do Now AAPLApple Inc$207.93-1.66%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum57.06Growth45.98Quality76.09Value8.06Price TrendShortMediumLongOverviewAMZNAmazon.com Inc$202.05-1.52%GOOGAlphabet Inc$164.85-0.33%GOOGLAlphabet Inc$163.46-0.30%MSFTMicrosoft Corp$449.56-0.79%Market News and Data brought to you by Benzinga APIs

Is Apple Falling Behind? The Struggle to Keep Up in the AI Race

Rivals like Google and Microsoft surge ahead in AI while Apple's cautious strategy and secrecy raise doubts. Apple once defined what it meant to lead in tech. It didn't always move first, but when it moved, the world followed. Under Steve Jobs, products like the iPod and iPhone sparked global revolutions. Today, artificial intelligence is transforming industries, but Apple's role in this transformation feels uncertain. Instead of leading, it now seems to be lagging. The question is no longer what will Apple do next? It is: Does Apple still know how to lead? Has Tim Cook preserved the boldness Jobs embodied, or is the company becoming a legacy brand that thrives on nostalgia more than innovation Let's see some facts to find the answer to the above question and see why Apple is struggling in the AI race in 2025. At the 2024 WWDC, Apple introduced 'Apple Intelligence', a long-awaited move into . The demo was vintage Apple, sleek, polished, and backed by celebrity flair with actor Bella Ramsey. Soon, though, reality kicked in. One key promise, Siri's memory of previous conversations, never made it to market. The backlash was swift! followed, accusing the company of misleading consumers. It wasn't just a PR stumble, it raised serious concerns about execution and product strategy. In a space where rivals are already deploying large-scale AI ecosystems, Apple's offerings feel like placeholders. Meanwhile, the competition surges forward. has placed it at the core of AI-enhanced productivity. Google continues to push its Gemini models across services, while Meta is investing heavily in AI infrastructure. In comparison, Apple's new features like Genmoji, message summarization, and a slightly smarter Siri seem just incremental. They are smooth and privacy-focused, but not transformative. Once the company that made tech feel magical, now seems to be reacting instead of leading. Apple's financials tell a mixed story. In the fiscal second quarter ending March 2025, Apple reported $95.4 billion in revenue, up 5% year-over-year. Net income hit $24.78 billion, with earnings per share up 8%. Hardware is also delivering. sales rose 2%, Macs grew 7%, and iPads jumped 15%. The services division, a consistent growth engine, also reached record highs. Beneath the headline, however, the numbers show signs of strain: Apple's famed secrecy once fueled anticipation, but in today's fast-paced world, it's starting to backfire. Tech leaders are embracing transparency, open-sourcing models, publishing research, and engaging developers while the tech giant keeps its cards close to its chest. This silence no longer inspires mystique, it stirs doubt. Internally, reports suggest fragmentation in Apple's AI leadership. There's no single figure guiding the company's AI direction, no equivalent to Jobs during the iPhone era. It's important to remember that without a clear vision, even simple technological advancements become overwhelming. Also Read: Tim Cook's leadership has made Apple more profitable than ever. His command of supply chains and operations is unmatched. However, AI is not an operations problem. It's a creative arms race. Steve Jobs took wild, sometimes reckless, swings. He placed bets that no analyst could justify, until they reshaped the market. Cook is cautious, predictable, and dependable, but is that enough? So, even as profits grow, many wonder whether Apple is prioritizing margins over moonshots. Apple could still surprise users. Its , focused on on-device models instead of cloud-heavy systems, might prove visionary. This strategy aligns with growing concerns about user data. It also plays to Apple's hardware integration strengths. It's important to note that the company isn't standing still. It's expanding its device base and shifting manufacturing to India and Vietnam to reduce geopolitical risks. There's a catch; innovation delayed is innovation lost. AI is evolving faster than any trend in tech history. Apple can't afford to be late again. Apple isn't failing. It's still growing, in revenue, in devices, in global reach. However, the growth isn't enough. The company that redefined how users listen, talk, and interact has yet to shape the AI era. has stabilized Apple, but has he inspired it? Steve Jobs didn't just build products, he created movements. That legacy now looms over Apple like a shadow and a challenge. Will Apple rise again, as the force that shapes what's next, or will it just keep trying to catch up while others lead the revolution? The answer begins not with revenue but with risk, vision, and courage. Also Read:

Inside Story: Is Apple Struggling With AI & Siri?

Apple faces mounting scrutiny over its artificial intelligence (AI) strategy, particularly concerning its voice assistant, Siri. Despite significant investments and strategic hires, the company appears to be lagging behind competitors in the rapidly evolving AI landscape. Apple's efforts to enhance Siri with advanced AI capabilities have encountered numerous setbacks. Features such as on-screen awareness and personal context understanding, initially slated for release with , have been delayed multiple times. Internal sources suggest that these features may not be available until 2026, if at all. The delays have been attributed to a combination of technical challenges and leadership issues within Apple's AI division. Reports indicate that ineffective leadership and a lack of ambition have hindered progress, leading to internal dissatisfaction and concerns about the company's direction in AI development.