Apple is Facing an AI Crisis [Gurman]

Apple is facing an undeniable crisis in artificial intelligence, according to new report from Mark Gurman.

In his latest newsletter to subscribers, Gurman paints a stark picture: the company that once led with Siri in 2011 is now lagging badly in the generative AI race, with rivals like Amazon and OpenAI pulling further ahead. As Apple prepares for iOS 19, the stakes are high and the outlook isn't promising.

The trouble started years ago. Siri, once a breakthrough digital assistant, has stagnated while competitors like ChatGPT and Google's Gemini redefined what AI can do. Apple Intelligence, unveiled last June, promised a revitalized Siri and a suite of AI features. However, in practice, the rollout has been rocky. The revamped Siri, meant to leverage personal data and control apps with precision, remains unfinished. It didn't make it into iOS 18.4 and now engineers are racing against a May deadline for iOS 18.5. Features like writing tools, voicemail transcriptions, and Genmoji have trickled out since October, but they're underwhelming—nice extras at best, not game-changers.


Amazon's recent Alexa+ unveiling only highlights Apple's struggles. Showcased last week in New York, Alexa+ offers a conversational, context-aware assistant that feels light-years ahead of Apple's efforts. It knows users' lives, interests, and surroundings—a leap reminiscent of ChatGPT's debut. Apple's integration of ChatGPT into its software, meant to bridge the gap, feels tacked on and lacks depth. Visual Intelligence, a Lens-like tool, and notification summaries have faltered too, with the latter even disabled in some cases after mangling news alerts.

This isn't sparking the upgrade frenzy Apple hoped for. Internal data purportedly shows Apple Intelligence usage is dismal, despite claims to Wall Street of stronger iPhone sales in AI-enabled regions. Unlike past late entries—think smartwatches or AirPods—Apple isn't outshining the competition here. It's trailing, and the gap is widening.

Looking ahead to iOS 19, Gurman doesn't expect a big AI leap. Apple's focus remains on stabilizing last year's promises, like merging Siri's dual systems into a smoother "LLM Siri" architecture. That's slated for a June reveal at WWDC, with a full rollout in spring 2026 via iOS 19.4. A truly conversational Siri, rivaling ChatGPT or Alexa+, was supposed to follow—but it's allegedly delayed, possibly to iOS 20 in 2027. That's a half-decade behind the curve, an eternity in today's AI sprint.

Apple's challenges run deep. Its foundational AI models are hitting limits, talent is reportedly being poached, and securing enough Nvidia chips to train software has proven tough. The company is leaning harder on its own servers and chip designs, but it's playing catch-up in a field moving at breakneck speed. Kim Vorrath's recent shift to the AI team signals urgency, but questions linger about John Giannandrea's stewardship.


For now, iOS 19 will likely lack major AI breakthroughs. Apple's ecosystem advantage of billions of integrated devices offers potential, but without a compelling AI to match, it's a missed opportunity. The company could lean on third-party models like ChatGPT or Claude, like rivals have, but its current OpenAI tie-up is too shallow to make a difference. Time's running out, and Apple knows it. Let's hope the company can pull off a comeback!

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