Is Apple’s AI Strategy Overhyped?

Tech analyst John Gruber criticized Apple’s generative artificial intelligence (genAI) strategy after the company announced a major upgrade to its Siri chatbot. The upgrade was expected to catapult Siri’s capabilities, but it has been delayed and now faces stiff competition from Amazon’s Alexa voice assistant.

Apple initially promised that the upgraded Siri would be available as part of the Apple Intelligence suite on iPhone 16 in September, sparking hopes for a new super-cycle in smartphone sales. However, the company quietly announced that the feature would not be released as early as expected.

The delay has led to speculation about why Apple is struggling with genAI and Siri. Marketing professor Marcus Collins suggests that the company’s focus on data privacy may be a major hurdle. To achieve personalized AI, massive amounts of personal data must be consumed, but Apple has been strict in protecting user information.

Tech analyst Avi Greengart points out that while Apple’s advertising for Apple Intelligence was extensive, much of what was promised is not yet available in the iPhone 16. He also cautions that customers may not have noticed significant improvements even if Google’s Gemini AI features are more advanced.

Despite its struggles with genAI and Siri, Apple remains the world’s most valuable company, with a share price still up 30% from a year ago. The company reported $124.3 billion in revenue during the recent holiday quarter, but sales growth fell short of market expectations.

Apple’s AI strategy has raised eyebrows among critics, who argue that the company rests too much on its laurels and relies heavily on the popularity of its iPhone. However, with Apple Intelligence delayed and facing competition from rival tech giants, it remains to be seen if the company can catch up and deliver a compelling AI experience for users.

Source: https://finance.yahoo.com/news/something-rotten-apples-ai-strategy-031817687.html