Apple (AAPL) Faces Challenges in AI Development Ahead of WWDC

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Jun 09, 2025
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Apple is encountering technical difficulties in upgrading Siri with advanced large language models (LLM), delaying the launch of its core AI feature, "Apple Intelligence." This challenge has led to skepticism on Wall Street about Apple's innovation capabilities, potentially disappointing investors at the upcoming Worldwide Developers Conference (WWDC).

Former Apple employees revealed that the company is attempting to enhance Siri's conversational abilities with self-developed LLMs. However, numerous bugs have arisen during integration, a problem not faced by competitors like OpenAI and Google. This has resulted in a decline in Apple's stock performance, with shares down about 18% in 2025, making it the worst-performing among the "Big Tech" companies.

Apple's struggle in the AI sector centers around Siri, which lags behind competitors' more sophisticated voice assistants. Despite releasing some AI features, the anticipated Siri transformation remains elusive. CEO Tim Cook admitted that Siri's technology hasn't met Apple's standards, leading to the withdrawal of a promotional ad and a consumer lawsuit over false advertising.

Analysts predict it may take Apple three more years to deliver a modern AI assistant, as the company plans to focus on brand strategy over technological breakthroughs at WWDC.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.