Apple's AI Growth Could Finally Take Off, Says Gene Munster, as Siri Gets Google-Powered Upgrade

Apple's AI story may be about to take off, says Gene Munster, as the company works on its own AI-powered search tool, dubbed World Knowledge Answers, integrated into Siri. The tool is expected to be powered by Alphabet's Gemini model. Munster believes that Apple's AI bar is low for the next six months, but the move could increase Apple's annual search-related revenue, currently at $20 billion.

Apple Inc. is poised to revolutionize its search capabilities with the upcoming launch of World Knowledge Answers, an AI-powered search tool that will be integrated into Siri and Safari. The new system, scheduled for release in the spring of 2026, aims to transform Siri into a robust "answer engine," capable of providing multimodal answers that blend text, images, video, and local results [1].

The development of World Knowledge Answers is part of a broader overhaul of Siri, Apple's digital assistant. The new system will leverage large language models (LLMs) to generate more conversational and accurate responses. Apple is also considering integrating the search tool into Spotlight, the search feature on the iPhone home screen [2].

Apple's collaboration with Google is a key aspect of this initiative. The company will utilize Google's Gemini AI model to power the new search experience, marking a deepening alliance between the two tech giants [2]. This partnership is seen as a strategic move to keep pace with AI advancements and to compete effectively with other AI-driven search tools like OpenAI and Perplexity [3].

The integration of World Knowledge Answers into Siri and Safari could significantly impact Apple's search-related revenue. Currently, Apple generates approximately $20 billion annually from its Google search deal. The new AI-powered search tool could increase this revenue by offering a more competitive and integrated search experience [3].

Gene Munster, a prominent tech analyst, believes that Apple's AI bar is low for the next six months, but the move to develop World Knowledge Answers could enhance Apple's AI capabilities and increase its annual search-related revenue [1].

The development of World Knowledge Answers also raises questions about Apple's broader AI strategy and its potential impact on market dynamics. If finalized, the collaboration with Google could solidify Google's role in Apple's AI future while potentially marginalizing smaller players like Perplexity [2].

In conclusion, Apple's push into AI-powered search represents a significant step forward in its digital assistant and web browser capabilities. The integration of World Knowledge Answers into Siri and Safari could reshape how billions of queries are handled on iPhones and iOS devices. As details emerge, investors and financial professionals should watch closely to see how this strategic shift impacts Apple's competitive landscape and revenue streams.

References:
[1] https://searchengineland.com/apple-world-knowledge-answers-ai-search-461569
[2] https://www.webpronews.com/apple-to-revamp-siri-with-googles-gemini-ai-for-2026-search-tool/
[3] https://www.business-standard.com/technology/tech-news/apple-plans-ai-powered-web-search-tool-for-siri-to-rival-openai-perplexity-125090400093_1.html