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

Apple will plough $1B annually into AI after being ‘caught off guard’ Ryan is a senior editor at TechForge Media with over a decade of experience covering the latest technology and interviewing leading industry figures. He can often be sighted at tech conferences with a strong coffee in one hand and a laptop in the other. If it's geeky, he’s probably into it. Find him on Twitter (@Gadget_Ry) or Mastodon (

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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