Apple's AI Ambitions: Can Perplexity Make 'Apple Intelligence' Work?

In the ever-evolving landscape of artificial intelligence, Apple Inc. finds itself at a critical juncture. The tech giant, known for its meticulous attention to detail and user experience, is grappling with significant delays in enhancing its virtual assistant, Siri. These setbacks come at a time when competitors like Google and Microsoft are aggressively pushing the boundaries of AI, leaving Apple in a precarious position.

The recent appointment of Mike Rockwell, the mastermind behind Apple's Vision Pro headset, to oversee Siri is a clear indication of the company's desperation to get its AI efforts back on track. CEO Tim Cook's decision to remove Siri from the command of AI head John Giannandrea and place it under Rockwell's leadership signals a strategic shift aimed at addressing the current delays and improving the overall AI experience for users.



The situation is far from ideal. Robby Walker, Apple's senior director overseeing Siri, described the delays as "ugly and embarrassing" during an internal meeting. The delayed features, initially expected this spring, are now pushed back to next year at the earliest. This internal frustration and the admission of promoting the enhancements prematurely highlight the urgency for change.

Apple's AI capabilities, particularly Siri, have lagged behind competitors for some time. The delay in rolling out key enhancements to Siri may further widen the gap as rivals aggressively enhance their AI offerings. Google's Gemini and Microsoft's Copilot are gaining traction, while Apple's Siri struggles to evolve. This delay could weigh on Apple's innovation narrative, particularly if competitors capitalize on this gap.

However, Apple's focus on privacy-first AI models could differentiate its offerings from competitors like Google and Microsoft. By prioritizing user data protection, Apple can build stronger trust and loyalty among its users. This approach contrasts with competitors who often rely on cloud-based processing, which can raise concerns about data privacy and security. Apple's commitment to user privacy could attract users who are wary of sharing their personal data with companies that use it for targeted advertising or other purposes.



The recent launch of the iPhone 16e, which includes Apple Intelligence and hardware features typically reserved for flagship models, is a strategic move to expand Apple's base of AI-capable iPhones. By incorporating the latest A18 chipset and the first in-house 5G chip, the Apple C1, the iPhone 16e will further enhance Apple's AI capabilities and improve cost competitiveness and connectivity capabilities.

Despite the setbacks, Apple's commitment to improving Siri could signal a more strategic, refined rollout in the future. The company's focus on enhancing privacy-first AI models may differentiate its product from data-hungry competitors. This approach could positively influence investor sentiment and market positioning by enhancing user experience, mitigating risks, and driving long-term growth.

In conclusion, while the delay in enhancing Siri is concerning, Apple's vast ecosystem and loyal customer base provide a cushion. Investors should monitor Apple's next steps in AI development, particularly during upcoming product announcements or the WWDC 2025 event. The company's strategic shift in leadership and focus on privacy-first AI models could position it favorably in the competitive AI landscape. However, only time will tell if perplexity can make 'Apple Intelligence' work.