Apple Plans AI-Powered Search Tool for 2024, Intensifying Competition with OpenAI and Perplexity AI

Apple is planning to launch an AI-powered search tool next year, intensifying competition with OpenAI and Perplexity AI Inc. The company is developing an internal code-named "World Knowledge Answers" AI search tool, which will be integrated into Siri to enhance its response capabilities and challenge the advantages of OpenAI and Perplexity AI in intelligent search. This system is expected to be embedded in Safari and Spotlight as part of next year's update. Apple is also collaborating with Google to evaluate the GEMINI model for the new version of Siri. This move is part of Apple's broader strategy to integrate AI into its ecosystem, aiming to provide users with more accurate and relevant search results. The company is also exploring partnerships with other tech giants to enhance its AI capabilities. This development comes as Apple continues to invest heavily in AI research and development, with a focus on natural language processing and machine learning. The company has been hiring AI experts and acquiring startups in the AI space to bolster its capabilities. Apple's AI search tool is expected to be a significant addition to its suite of services, providing users with a more intuitive and efficient way to find information. The tool is also expected to integrate with other Apple services, such as Maps and News, to provide a seamless user experience. Apple's move into AI search is a strategic response to the growing competition in the AI space, as companies like OpenAI and Perplexity AI Inc. continue to make advancements in the field. By integrating AI into its search capabilities, Apple aims to stay ahead of the curve and provide users with the best possible experience. The company's focus on privacy and security is also expected to be a key differentiator, as users become more concerned about data protection. Apple's AI search tool is expected to be launched in the first half of next year, with a beta version available to developers and select users in the coming months. The tool is expected to be a significant addition to Apple's ecosystem, providing users with a more intuitive and efficient way to find information.

Apple's new search experience will feature an interactive interface that integrates text, photos, videos, and local points of interest. It will also include an AI-driven summary system designed to present more precise and readable search results faster than the current Siri. The company is planning to use a large language model (LLM), a key technology for generative AI, to power this new system. The new Siri will be able to call on personal data and screen content to better handle queries and operate devices more precisely through voice commands. This is part of a broader overhaul of Siri, which has been in the works for some time. The new system, codenamed "Linwood" and "LLM Siri," will lay the groundwork for AI search functionality. Multiple teams are involved in the search project, including the Siri team led by Craig Federighi, the AI department led by John Giannandrea, and the services unit managed by Eddy Cue. Mike Rockwell, the creator of Vision Pro, is leading the effort under Federighi's guidance, while former Siri head Roby Walker is a key driver of the project under Giannandrea. Apple plans to use the same underlying search system for the World Knowledge feature and the previously announced (but delayed) device-specific search functionality. This tool will help users quickly find specific images, files, and other types of information. While Apple primarily plans to embed the new search system into existing features, it has also considered developing a chatbot-like application for search purposes. The new Siri and search changes are currently scheduled to be released with the software update codenamed "Luck E," corresponding to iOS 26.4, expected to be released as early as next March. The initial version of iOS 26 will be released this month with the new iPhone flagship, and Apple is set to unveil the iPhone 17 series next week.

Apple is restructuring Siri around three core components: the planner, the network and device search system, and the summarizer. The planner analyzes voice text input and decides on the response method; the search system scans the network or user data; and the summarizer integrates information to generate answers. A significant change is that Apple is considering using third-party AI models to drive the new Siri, at least in part, through the "Glenwood Project." The current Siri operates entirely on Apple's proprietary technology. Sources indicate that Apple is leaning towards using a customized version of Google's Gemini model for the summarizer, which will run on Apple's private cloud computing servers. The search engine giant has delivered the technology to Apple, and the two companies are collaborating on fine-tuning and testing. Apple is also considering using the Google model for the planner function but is continuing to evaluate the use of Anthropic PBC's Claude model or an in-house model. The possibility of using Gemini to handle additional AI and search-related functions has not been ruled out. Currently, the iPhone maker plans to retain its proprietary "Apple Foundation Model" technology to handle user data searches, which helps protect user privacy as customer information will not be processed by third-party technology. Google was not the initial choice for the Siri project. Anthropic was close to reaching an agreement, with internal evaluations showing that Claude was of higher quality than Gemini. However, it is reported that Anthropic charged a high price for technology use—an annual fee exceeding 150 million dollars, while Google offered more favorable financial terms. This prompted Apple to invite Google to develop a model to drive Siri. This is not the first time the two companies have negotiated AI-related agreements. Last year, Apple approached Google about integrating the Gemini chatbot into Siri, but ultimately chose to collaborate with OpenAI. The two companies have publicly stated that they are still pushing for the agreement, but the feature has not yet been released to users.

In addition to the Siri and AI search upgrades planned for the first half of next year, Apple is planning a visual overhaul of the voice assistant and the development of a health AI agent to support the paid health subscription service in 2026. Another Siri update will bring stronger conversational capabilities to future home devices. All of this is part of Apple's revitalization plan in the AI field to catch up with Silicon Valley competitors. After the delay of the new Siri this spring, Apple adjusted its management structure to initiate the transformation, but this process will take time. It is not expected that major new AI features will be released with the iPhone 17 next week.

During the development of the new Siri, Eddy Cue and Adrian Perica, the head of acquisitions, considered a series of potential acquisitions. Apple has discussed acquiring Perplexity and Mistral. Executives recently met with the French AI startup Mistral in July. This summer, Apple seriously evaluated Perplexity's technology but is no longer actively considering an acquisition. Its in-house search product will compete with this startup's product. Apple is still looking for transaction opportunities, especially to supplement its talent pool. The company is facing a talent exodus. The "Apple Foundation Model" team, consisting of dozens of scholars, researchers, and engineers, has been hemorrhaging in recent weeks. In early July, the department's founder and head, Pang Jianming, left to join Meta Platforms with a salary exceeding 200 million dollars. Since then, about ten team members have left, most following Pang Jianming to the social media giant. Last week, three more core AI researchers left: John Pibbles and Nan Du joined OpenAI, and Meng Zhao went to Anthropic. More team members are actively interviewing for other job opportunities.