This week, Apple faced more criticism over its AI efforts, especially with the news that key improvements to Siri, under the banner of Apple Intelligence, have been delayed until 2026. Many were disappointed by the delay of features promised during the 2024 WWDC keynote, and influential Apple commentator John Gruber didn’t hold back in criticizing Apple’s slow progress. He’s not alone in this assessment. As competitors zoom ahead with their AI innovations, Apple faces some tough challenges. Let’s take a closer look at what’s happening and what options Apple has going forward.

The Rise of AI and Apple’s Struggle to Keep Up

Artificial Intelligence, especially generative AI, is no longer a buzzword; it’s part of the digital fabric that defines how technology works today. From Microsoft’s Copilot to Google’s Gemini, AI is deeply integrated into various products and services. In some cases, like in Photoshop’s image editing or tools like Grammarly, AI operates in the background. Yet, it’s clear that AI is not just a luxury; it’s a necessity. If Apple doesn’t catch up, it risks falling behind.

The key to most modern AI tools is access to large data sets for training purposes. Companies like Google, Microsoft, and OpenAI have massive troves of data, which helps power their AI models. Unfortunately, Apple’s commitment to user privacy creates a major obstacle here. Unlike its competitors, Apple has long promised to keep user data secure and private, and it stores as much data locally on devices as possible.

The Catch-22 of Apple Intelligence

Apple is now caught in a Catch-22: AI is rapidly becoming essential in both hardware and software, but Apple is trying to maintain its stance of not gathering and using user data for AI training. This leaves Apple in a position where it lacks the extensive data needed to train powerful AI models while still needing to deliver high-performing AI to stay competitive.

On one hand, Apple’s dedication to privacy and data security is admirable. On the other, it has put the company at a disadvantage when it comes to building AI tools that require large, diverse datasets. Without the data to fuel AI development, Apple faces an uphill battle.

Possible Solutions: How Can Apple Break Free?

So, what can Apple do to break this loop and catch up in the AI race?

1. Embrace Smaller AI Models Locally
One possible solution is for Apple to focus on integrating smaller, locally running AI models directly on its devices. This would align with its privacy-first approach, as data wouldn’t need to leave the device for processing. Many Android smartphones are using this method successfully. While this approach ensures privacy, it could fall short of providing the same level of accuracy and sophistication that cloud-based AI can deliver.

2. Partnering for AI Expertise
Another route Apple has explored is working with external AI companies. Apple has teamed up with OpenAI to improve Siri, but this collaboration has yet to yield results that feel truly “Apple-like” in quality. Outsourcing AI efforts might help Apple catch up, but it also risks diluting its signature user experience.

3. Focus on AI Transparency and Privacy
In a world where big data drives AI, Apple could pivot to focusing on a privacy-centered AI model. If Apple can find a way to train effective AI models without compromising user privacy, it could carve out a unique niche. This would be a bold move, one that could have revolutionized the discussion around AI two or three years ago. If done now, however, it might be dismissed as a defensive strategy due to Apple’s struggles.

What’s Next for Apple Intelligence?

The road ahead isn’t easy for Apple. According to Mark Gurman in his Power On newsletter, Tim Cook and his team are now focused on solving these challenges. Apple’s annual “Getaway” retreat, which brings together its executive team, will likely be dominated by discussions on what went wrong with their AI efforts and how to fix it. However, a shake-up of leadership isn’t expected. Apple’s AI woes will likely fall on the shoulders of the current management team, including key figures like Giannandrea, Joswiak, and Federighi.

Apple’s Privacy Commitment vs. the AI Boom

Apple’s insistence on user privacy, though highly regarded, may be contributing to its struggles in the AI race. While this approach has garnered trust and loyalty from consumers, it has also put Apple on a different path from its competitors. As the industry moves towards more data-driven AI models, Apple’s refusal to participate in this practice is increasingly at odds with the market’s demands.

If Apple can somehow deliver AI without relying on massive datasets, it would be a game-changer. However, this would require a major leap in AI technology—one that would truly live up to Apple’s legendary status. Until then, Apple has some serious work ahead to find its place in the AI revolution.