Apple Scrambles to Address Siri's AI Challenges After Missteps

Apple Inc. is reportedly experiencing significant internal challenges as it attempts to rectify major AI shortcomings with its virtual assistant, Siri. A top executive referred to the ongoing delays as "ugly and embarrassing", admitting that the company had marketed features that were not fully ready for deployment.

What Happened: During an all-hands meeting for the Siri division, senior director Robby Walker expressed the collective frustration among employees regarding the repeated postponements of essential AI-driven enhancements for Siri. According to reports, Walker stated that this was a case where the company presented its AI advancements at a major event prior to their actual readiness, unlike previous situations where plans were unveiled only after completion.

Walker acknowledged that the marketing department exacerbated the issue by promoting upcoming features in television commercials and brand campaigns, despite being aware that these features were not yet operational.

Originally anticipated for a launch in early 2024, the AI enhancements aimed at improving Siri's personal assistant capabilities, data integration, and app management have continually faced delays due to performance issues. Walker indicated that these features were functioning correctly only about two-thirds to 80% of the time, indicating a failure rate of nearly one out of three attempts.

Currently, Apple aims to introduce these enhancements in the upcoming version of iOS 19, but Walker cautioned that the timeline remains uncertain due to competing priorities within Apple's broader software and hardware teams.

Why This Matters: These ongoing delays draw attention to Apple's difficulties in keeping pace with advancements in AI, especially as rivals like OpenAI, Alphabet Inc. (Google), Amazon.com, Inc., and Microsoft Corporation rapidly progress in this arena. Siri has consistently fallen behind its competitors, and these setbacks raise concerns about Apple's competitive edge in the AI market.

Adding to the pressure, Apple's stock has seen a decline of 12.45% year-to-date within a broader market context. Recently, investment firm Morgan Stanley expressed worries about Apple's AI delays, prompting a reduction of the company's price target from $275 to $252.

To bolster its position, Apple is reportedly teaming up with Alibaba Group Holding Ltd to enhance its AI offerings on iPhones specifically for the Chinese marketplace, an effort that may be pivotal in regaining market share in China.

Stock Performance: On the last trading day, Apple's stock closed at $213.49, marking a rise of 1.82% for the day; however, after-hours trading reflected a slight drop of 0.094% according to available data.

Apple, Siri, AI