Apple will plough $1B annually into AI after being ‘caught off guard’

Ryan Daws is a senior editor at TechForge Media, with a seasoned background spanning over a decade in tech journalism. His expertise lies in identifying the latest technological trends, dissecting complex topics, and weaving compelling narratives around the most cutting-edge developments. His articles and interviews with leading industry figures have gained him recognition as a key influencer by organisations such as Onalytica. Publications under his stewardship have since gained recognition from leading analyst houses like Forrester for their performance. Find him on X (@gadget_ry) or Mastodon (@gadgetry@techhub.social)


In response to rapid AI advancements, Apple is set to plough $1 billion annually into the development of competing solutions.

Executives at Apple have reportedly expressed concerns about falling behind competitors, particularly in the wake of innovations driven by AI models like GPT.

CEO Tim Cook confirmed Apple’s commitment to generative AI in a recent statement, acknowledging the need to catch up with the evolving market. The company, which was reportedly “caught off guard” by the AI surge, has been diligently working to bridge the gap since late 2022.

This initiative is viewed as crucial internally, with insiders describing it as a significant endeavour to regain lost ground. Apple’s strategy includes the creation of an internal chatbot named ‘Apple GPT’ and an exploration of how generative AI can be seamlessly integrated into their products.

The project is under the leadership of SVPs John Giannandrea and Craig Federighi, who are respectively responsible for AI and software development. Additionally, Eddy Cue, Chief of Services, is actively involved. The estimated annual investment of $1 billion underscores the magnitude of Apple’s commitment to this endeavour.

Giannandrea is overseeing the development of cutting-edge AI technologies and the enhancement of Siri utilising these advancements. Users can anticipate an improved Siri experience as early as 2024.

Federighi’s software engineering team is diligently working on integrating AI into the upcoming iOS version. This integration is expected to enhance Siri’s responsiveness to queries and improve auto-completion features in Messages.

Cue’s services team will aim to enhance various apps, including playlist generation in Apple Music and assisting users with tasks in apps like Pages and Keynote.

Apple is also exploring the incorporation of generative AI into development tools like Xcode, potentially streamlining app creation for Apple platforms. 

The company is also piloting the use of generative AI in internal customer service applications within AppleCare.

There are reportedly some divisions within the development team around the choice between on-device processing – which prioritises privacy – and cloud-based large language models (LLMs), which could facilitate the development of more advanced features.

As Apple accelerates its efforts in the realm of AI, observers will have to wait and see how these innovations will benefit the company’s ecosystem and user experience.

(Photo by Laurenz Heymann on Unsplash)

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