Apple's AI Strategy: A Lackluster Event
Source: pymnts.com
Apple's Worldwide Developers Conference (WWDC) 2025 revealed new features for Apple Intelligence, its AI framework focused on privacy and on-device processing for iPhones, iPads, Macs, and Vision Pro.
Despite the rollout, Apple is prioritizing measured integration, design, and user privacy over rapid innovation in generative AI. Investors seemed unconvinced, as the company's stock dropped 1.2%.
Apple, known for innovation, presented nothing particularly exciting at the WWDC. Apple's Craig Federighi said that upgrading the Siri AI voice assistant would require “more time to meet our high-quality bar,” according to The Wall Street Journal.
This approach contrasts with Amazon, Google, and Microsoft, which are using large language models and enterprise-scale AI solutions. While those companies deploy AI agents in business software and cloud infrastructure, Apple offers capabilities like real-time voicemail transcripts, enhanced Spotlight search, call screening, and translation.
Apple's AI emphasizes intelligence without surveillance. Most new features announced at WWDC are processed on-device, with a promise that user data will not be harvested for training.
However, on-device models are smaller and less powerful than cloud-hosted models. This limits the sophistication of Apple’s offerings, especially for enterprise applications requiring contextual reasoning, custom training, and real-time collaboration.
The Foundation Models Framework is a step toward opening its AI infrastructure to third-party developers. Still, The Wall Street Journal suggests Apple’s AI stack may be insufficient for serious enterprise applications.
Most enterprise AI innovation occurs in the cloud, using APIs and platforms that allow fine-tuning, multi-modal inputs, and integration with vast data sets. Apple's reluctance to enter this space leaves it dependent on consumer hardware cycles and developer goodwill.
PYMNTS CEO Karen Webster noted in May 2023 that Apple’s stance on privacy and its closed ecosystem might cause it to lose the generative AI war, despite its smartphone market share.
Apple attempted to counter criticism by redesigning its software ecosystem with Liquid Glass, a new user interface across iOS, iPadOS, and macOS featuring translucent, layered interfaces. These visual updates emphasize design over AI innovation.
Besides AI, Apple faces tariffs that threaten hardware profit margins. There is also pressure to change its overseas production model. The company’s services division is facing legal scrutiny regarding App Store fees and payments from Google.