AI Battle: Why Apple Is Falling Behind

Apple’s AI Struggles: Signs of Falling Behind 

Apple, known for its innovative products and technologies, continues to face serious challenges in artificial intelligence. Apple appears to be losing the AI battle due to recent personnel changes, delays in launching key functions, and lawsuits. Signs indicate that the company is losing ground in the AI leadership race. 

These issues have already begun to affect Apple’s reputation and market value. To find a solution, Apple’s management is seeking to accelerate the development and implementation of AI technologies. 

Leadership Changes: Giannandrea’s Exit and Rockwell’s Rise 

One of the measures is Apple’s decision to dismiss John Giannandrea, head of the AI division, from his post due to the launch delays. Giannandrea, who joined Apple in 2018 after working at Google, was responsible for developing AI technologies, including Siri and machine learning. However, his efforts did not bring the expected results, especially against the growing competition from companies such as OpenAI, Google, and Microsoft. 

Delayed AI Features: A Setback in the Innovative AI Battle

The company planned to introduce new features this year, but the development took longer than expected. As a result, the launch of Apple Intelligence, which was supposed to be a response to products like ChatGPT and Gemini, has been postponed again. 

Such delays disappoint both users and employees, who express their concern that the company is lagging behind its competitors. 

Giannandrea was replaced by Mike Rockwell, who previously led the development of the augmented reality headset Apple Vision Pro. Rockwell, known for his ambitious projects and innovative approach, will now assume responsibility for developing the company’s AI business. This appointment caused a mixed reaction within Apple, as Rockwell had not previously been directly involved in AI, and his experience is focused on hardware and AR technologies. 

Paul Meade, who worked under Rockwell on Vision Pro hardware, was appointed head of the Vision Pro Group. As of now, it is unclear whether this will yield the desired results. 

Internal Concerns: Employee and User Frustrations Grow

Apple’s AI difficulties have spread beyond the company and have already caused lawsuits. A recently filed claim by a group of consumers states they bought the iPhone 16 and other Apple devices, believing they were already equipped with generative AI features. The lawsuit says that the company actively advertised these features, although they were unavailable at the time of the sale. 

This lawsuit could seriously harm Apple’s reputation within the AI battle, especially amid user discontent. It is rumored that these legal risks have become one of the reasons for the top management replacements. 

Market Impact: Stock Decline and Investor Concerns

After the recent surge, the company’s market value started to decrease. Apple stock continues to lose its price. Over the past few months, Apple’s capitalization has decreased by several billion dollars, which is attributed to delays in the launch of AI functions, growing competition in the market, and the activity of automated trading software, which reacted the fastest to this news.  

Investors fear that Apple may lose its position in the technology industry if it cannot quickly solve the problems with AI. While competitors actively introduce generative AI into their products, Apple risks being left behind. 

Competitive Pressure: Can Apple Catch Up?

Nonetheless, the leading tech company is far behind its competitors. Its closest opponent is not even close when it comes to market valuation and share prices. Microsoft stock could not keep up the pace with Apple in 2024, but maybe 2025 will give Gates’ company a chance to beat its long-term enemy. 

The Road Ahead: A Critical Moment for Apple in the AI Battle

Apple is at a crossroads. The company is trying to restructure its AI strategy, but it is still unclear whether it will be able to catch up with competitors. Mike Rockwell’s appointment may be a step in the right direction, but it will take time and resources, while delays in the launch of Apple Intelligence and lawsuits continue to put pressure on the company. 

If Apple cannot resolve these issues quickly, its market position in the AI battle could be seriously shaken. In the coming months, it will become clear whether the company will be able to regain the trust of users and investors or continue to lose its leading position in the technology industry.