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Has Apple Failed to Crack AI?

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Apple Intelligence | Developer Program | WWDC 2024

In 2018, Apple hired John Giannandrea, previously of Google, as its head of AI. Giannandrea had been leading Google’s search and AI teams, and the company was using new tech in Gmail, Photos, and Translate.

Where does Apple now stand?

Racing at Lightning Speed

For Apple, hiring Giannandrea was a coup. The hope was that the company would supercharge its AI progress. Back in 2011, Siri was launched and, though it’s become part of everyday life, at the time it felt like something out of Star Wars. Apple had – not for the first time – led the way. But by the time of Giannandrea’s hiring, it had arguably fallen behind, with Google and Amazon introducing their own voice assistants.

As Bloomberg reported, after ChatGPT’s introduction in 2022, major tech companies have tried to keep up. Large language models (LLMs) are now used in everything from voice assistants to customer service bots on casino websites.

OpenAI ChatGPT App | Apple Vision Pro

The arrival of ChatGPT and other LLMs quickly shifted the landscape, but Apple’s approach to AI remains distinct. Unlike its rivals, Apple has always prioritized user privacy and seamless integration, rather than headline grabbing AI demos. The philosophy was evident in its June announcements and the direction of its AI strategy.

On June 9 at WWDC 2025, Apple announced new Apple Intelligence features including new ways to communicate with Live Translation, enhancements to Image Playground and Genmoji, and updates to visual intelligence. The company noted that the intelligence software was “built with privacy” and available when users are offline. Craig Federighi, senior vice president of software engineering, noted Apple’s continued commitment to protecting users’ privacy.

Supporting Developers

Another notable aspect of Apple’s current strategy is its support for developers. By opening up its Apple Intelligence foundation model, a new generation of apps can leverage AI while maintaining the privacy and performance Apple users expect. This move is already being embraced, with OpenTools noting that Apple received praise for its “steadfast support” of developers. Others expected more AI breakthroughs, but as Apple emphasized, its focus is more on enhancing app development.

Incremental Improvements

Apple’s AI models are smaller in scale than some rivals, and the conversational Siri (based on LLMs) has been postponed again. While analysing Apple’s stock position, xtb noted the company is focusing on incremental improvements rather than revolutions. But is this necessarily a bad thing? Apple has long been the leader in product design; the new Solarium interface (for iOS, iPadOS, and macOS) may be yet another major step forward. As xtb summarised, Apple’s strengths are still evident, and it can count on loyal users, high margins, and strong cash flow. The company is still valued highly and is seen as a safe haven in the stock market.

Last word

The AI race is far from over. Apple isn’t always the loudest voice in the room, but it maintains a more deliberate, user-first approach, making sure that when its AI features arrive, they will be ready for millions of users relying on Apple devices every day.

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