Apple's AI Vision Faces Uncertainty as Key Figure Robby Walker Exits Amid Siri Setbacks

Recently, one of Apple's leading figures in artificial intelligence, Robby Walker, announced his departure from the company. Walker has been pivotal in Apple's AI development, reporting directly to John Giannandrea, Apple's AI chief. Until earlier this year, Walker managed Siri, though the responsibility for this digital assistant was later shifted to Craig Federighi. Under Walker's guidance, Siri struggled with delays in delivering promised improvements, marking a setback for Apple.

Following his role with Siri, Walker focused on developing a new AI-driven web search system, aiming to rival offerings like Perplexity and ChatGPT. This project is slated for a launch next year. Walker’s exit, planned for next month, highlights potential shifts within Apple's AI strategy, yet the company has declined any official comments regarding his departure.

In a recent downturn in consumer sentiment, the preliminary Michigan consumer confidence index for September fell to 55.4, down from an earlier forecast of 58, marking its lowest point since May. This decline reflects increasing economic uncertainties amid changing market conditions.

Simultaneously, prominent financial institutions like Morgan Stanley and Deutsche Bank have adjusted their outlook on the Federal Reserve's monetary policy. With inflation weakening and a softer labor market, there's an expectation of an accelerated pace of rate cuts. Predictions from these banks suggest an initial 25 basis point reduction by the Fed next week, with further rate cuts anticipated in October and December.

Deutsche Bank has expanded its forecast to include yet another rate cut by the Fed in 2025, envisioning overall policy easing led by Chairman Jerome Powell. The revised expectations indicate a continuous sequence of rate reductions across several upcoming meetings. Morgan Stanley similarly projects a total of four consecutive rate reductions extending to January next year.

The broader market anticipates a suspension of rate cuts by December, with the potential for further action resuming in April 2026. As economists weigh the consequences of diminishing inflation and a weak labor market, they foresee the Fed striving to achieve a neutral rate stance more decisively. Following a likely pause post-January to assess inflationary impacts, additional cuts may follow as the labor market further deteriorates.