Apple's Make-or-Break Moment: Can It Forge a Path Forward with AI?

Tim Cook experienced a truly awful year.

First, Siri couldn’t do any Among the exciting features Apple had announced. Afterward, the tariffs , possibly eating into the profit margins of iPhones. A judge suggested the company should be looked into for potential antitrust violations. Its profitable iPhone Google search agreement was criticized. And what about the Vision Pro? Does anyone recall it?

Tim sighed. "Hey Siri, will things improve shortly?"

As per the information from the CDC," Siri responded, "many individuals with a moderate case of Covid-19 usually start feeling improvement within approximately seven days."

Welcome to Apple in 2025, where circumstances might significantly deteriorate or dramatically improve. (Indeed, this is exactly what Siri responds with when asked about potential improvements in the near future.)

Among all these concerns, artificial intelligence could present the most significant long-term danger. Apple constructed its billion-dollar business around superior products—items that thrive due to their "seamless combination of software, hardware, and services," as Cook frequently emphasizes during each presentation.

Recently, these key software and service pillars have been leaning heavily towards AI integration. Apple doesn't even come close to being considered among the leading companies in this area. leading the AI charge Google, Meta, Microsoft, OpenAI—every couple of weeks, they unveil their latest dazzling generative AI tools and upgrades. As for Apple? Well, at least it still produces the hardware needed to use all these nifty innovations from others, correct? (Add here an emoji depicting someone shrugging.)

On Wednesday, during his testimony in the Alphabet (Google) antitrust trial, Eddy Cue, who holds the position of Apple’s senior vice president for services, mentioned that they are collaborating with various artificial intelligence firms to incorporate additional technologies into Safari as well as other offerings, as reported. The Verge and Bloomberg . Meanwhile, Bloomberg and The Information The report indicates that Apple has implemented internal modifications to address the issues with Siri. When asked for comments, an Apple representative chose not to respond.

What occurs subsequently? It appears there are two distinct routes ahead. Would you like to join me in exploring Choose Your Own AI-Venture, Apple Edition?

Route 1: Apple stumbles with artificial intelligence

In 2011, Apple Executive Phil Schiller presented Siri as "an intelligent helper designed to assist you with your tasks simply through voice commands." Since then, Apple has been attempting—emphasis on attempting—to fulfill this commitment. Considering this background and the frequent letdowns, initial Apple Intelligence tools Given this situation, it's reasonable to question Apple's likelihood of achieving success.

Now, the stakes are higher. We’re no longer just talking about voice commands and dad jokes. We’re talking about the tech that will power the interface of every device, from current gadgets (iPhones, AirPods, Apple Watches) to future ones (smart glasses, home robots and more).

If Apple can’t break through with strong, functional AI, its route through the Land of Mis-Siri (get it?) will have two stops:

Vessel Valley. Apple’s high-quality hardware serves as a container for various services from other businesses—consider Google’s Gmail, Docs, and Calendar, among others. Artificial intelligence might further erode this setup.

It has already begun. During car trips, I find myself engaged in conversations with ChatGPT’s in-app voice mode To prepare for the upcoming meetings and discuss project planning. The recently launched voice assistant from Perplexity, which was made available at the end of April, also has the capability to manage music playback, emails, reminders, and various other functionalities on iPhones.

In his courtroom statement, Cue mentioned that Apple had discussions with Perplexity regarding more extensive iPhone integration, according to reports. Additionally, he forecasted that AI-driven search companies such as OpenAI, Perplexity, and Anthropic will ultimately supersede conventional search platforms like Google. Genmoji-me saying this a few weeks ago.)

Hardware Bluffs. If Apple can’t maintain pace with software advancements, it risks losing its advantage in hardware, particularly in wearables. Consider Meta; they transformed simple camera-enabled sunglasses into top-notch AI devices. I wear Meta’s Ray-Bans almost daily And pose queries to the AI for simple weather predictions or instructions on fixing that pesky leaking garden hose, rather than using Siri.

Google is also developing rival smart glasses, and OpenAI is apparently joining forces with them. former Apple design chief Jony Ive mentioned something about earbuds or perhaps another screenless gadget. During an interview with me in 2023, OpenAI CEO Sam Altman confirmed these rumors. it wasn’t a smartphone Representatives from OpenAI and Ive’s LoveFrom chose not tocomment.

Indeed, Apple appears to be engaged in comparable initiatives such as AirPods equipped with cameras, intelligent spectacles, and household gadgets. However, lacking the essential artificial intelligence technology to drive these innovations could result in their failure to impress consumers significantly.

"Apple has evolved into a typical quick follower rather than remaining as a pioneering innovator in nearly every field," stated Professor David Yoffie from Harvard Business School, who has extensively researched the company. This shift doesn’t necessarily spell doom; however, he noted that Apple’s substantial user base provides some buffer against potential decline. The real risk lies in falling significantly behind competitors, according to him.

Route 2: Apple excels at AI

The alternative route leads to the rose-gold pathway of Siri-utopia. Here, within this realm, Apple has resolved all its artificial intelligence issues. Gone are the days when it frittered away resources on emoji creators that mistakenly placed a pig’s snout onto a canine face. Now, they have reinforced both their minor and major linguistic models, enhanced their natural language understanding, and added a dash of secretive Silicon Valley magic. As one prances down this avenue, they encounter:

Bot’s Landing. My children have stopped yelling "Siri, you stupidhead" from the backseat. Now, the assistant actually fulfills its initial promise. There are no more absurd texting errors, spontaneous online searches, or instances of saying "let me ask ChatGPT."

It boasts more profound insights and a voice that sounds very much like a human, similar to Meta and OpenAI's aids. What sets it apart from those is that it can perform genuine Siri functions, such as activating your lights or opening your garage . Yes, just like the promised Alexa+ that still hasn’t arrived.

Wearable Wonderland. Great Siri resides within your fashionable Apple sunglasses. It observes whatever you see and offers helpful information—such as identifying an unusual rash or introducing a new colleague. ("That's Bertha—the one with blonde hair," it murmurs.)

In the meantime, your Apple Watch has become the medical aide that Dr. Tim, the Medicinal Maestro, has long envisioned. It elucidates your symptoms, provides beneficial health advice, and can even warn you before you fall ill.

Automation Alley. The stylish home bot from Apple buffs my wooden floors, tackles folding clothes, and prepares my almond milk latte. While it doesn’t brush the dog, it can schedule a grooming session for me.

Certainly, residing in this paradise necessitates an Apple Intelligence+ subscription costing $29.99 per month.

"As strange as it might seem, you could potentially do without an iPhone ten years down the line," Cue stated during his testimony, as reported by Bloomberg. He further noted that technological advancements such as artificial intelligence present fresh chances for newcomers and innovative items. Should the iPhone not remain relevant, Apple clearly aims to stay central to whichever product emerges subsequently.

To achieve this, Apple may need to accelerate its efforts more intently, however, without making overly ambitious promises they can’t keep.

Next month, we'll discover how swiftly Apple is progressing towards achieving Siri-topia during their major developer conference.

Apple’s Craig Federighi told me in October It’s "a multi-year—even spanning several decades—progression of this technology unfolding." Here's hoping we won't have to wait until 2035.

Write to Joanna Stern at joanna.stern@wsj.com