Apple Inc. (AAPL, Financial) is grappling with significant challenges in its artificial intelligence (AI) initiatives, particularly concerning its virtual assistant, Siri. At a recent internal meeting, Robby Walker, a senior executive in charge of Siri, candidly addressed the team, highlighting the embarrassment and frustration caused by delays in launching key AI features. These features, initially planned for release this year, are now postponed indefinitely, with the earliest possible release expected next year.
Walker acknowledged the team's impressive work but admitted that the premature public promotion of these features worsened the situation. The AI enhancements, critical for improving Siri's functionality, were initially showcased at Apple's Worldwide Developers Conference (WWDC) last year. However, they remain in prototype form, with substantial technical hurdles yet to be overcome.
Despite the setbacks, Apple continues to prioritize the development of industry-leading virtual assistant capabilities. The company has been forced to delay the integration of these AI tools into iOS 18.5, now considering their inclusion in the iOS 19 release cycle. Meanwhile, internal restructuring is underway, with senior management, including AI head John Giannandrea, taking responsibility for the delays.
Notably, Apple analyst Ming-Chi Kuo has expressed concerns over the lackluster impact of the Apple Intelligence features on iPhone upgrade demand. He noted that the market's expectations for these AI tools have been overly optimistic, leading to a decrease in iPhone 16 shipments. Kuo's analysis aligns with broader market sentiment, which has shifted due to Apple's delayed AI advancements.
Apple's efforts to enhance its AI capabilities, including potential collaborations with Chinese tech giant Alibaba, are seen as insufficient to reverse the declining iPhone sales trend. The company's AI struggles have drawn criticism from industry observers, further highlighting the gap between Apple and competitors like OpenAI and Google.
