Apple’s AI strategy has come under the microscope yet again. Wall Street analysts aren’t pleased that a company, once seen as a trailblazer in the advancement of technology, is now faced with an approach to artificial intelligence that critics label “invisible.”
The buzz around AI has spurred many companies into action so they can have a taste of the technology. Giants like Google, Microsoft and OpenAI continue to race ahead with bold innovations and pouring massive investments into the development of AI.
Meanwhile, Apple’s strategy still remains at a standstill, and analysts and investors are now asking when Apple’s AI revolution will start.
Dan Ives, Analyst at Wedbush Securities is particularly blunt when he says that Apple’s AI strategy is “essentially invisible.” For a company that launched the modern smartphone era and revolutionized personal computing, it is worrying that their AI strategy hasn’t bore any fruit.
Last year, Apple revealed Apple Intelligence, an ambitious AI project that promised smarter Siri, deeper app integration, and a more personalized experience. However, Apple postponed the release of this upgraded Siri and several other AI-powered core features till 2026. As such, Siri’s upgrade to better understand personal context and seamlessly act across apps, just like its competitor Alexa, is nowhere near the public yet.
These delays have further fueled skepticism. Dan Ives, in an interview with Bloomberg Tech, said, “Nothing’s going to happen internally [at Apple],” adding that “there’s no one on the [Wall] Street that believes any innovation is coming out of Apple when it comes to AI organically.”
Apple’s stock performance in 2025 also reflects growing investor unease. Despite posting robust financial results, the company’s shares have lagged behind peers and broader markets.
After delivering a strong $94 billion revenue quarter, with 13% growth in iPhone sales and record services revenue, one might expect stock prices to soar. Yet, Apple’s stock dipped, revealing that investors consider AI innovation a critical factor for Apple’s future valuation.
One popular reason as to why Apple’s AI strategy has bore no substantial product yet is the tech giant’s prioritization of privacy that emphasizes on-device processing to safeguard user data. This privacy-first approach limits the scale and speed of AI innovation compared to other systems that have fewer restrictions on data use.
To catch up in the AI arms race, Apple will have to make a trade-off on its core values. Personalized AI, the type Apple is looking to build in Siri, relies on vast amounts of data, which means its privacy-first stance may be slowing down the tech giant’s ability to roll out competitive features rapidly.
To further catch up in a race that has left Apple behind, Ives recommends a three-pronged approach: acquire AI search company Perplexity, recruit top AI talent and experienced AI executives, and integrate Google’s Gemini project into Apple Intelligence.
Apple has over 2.4 billion iOS devices in its possession, and they can use this advantage to catch-up in the AI arms race and start actively competing with other tech giants.
Starting from next year, Apple has announced that they’ll be integrating GPT-5 into iOS 26 (named after the year 2026) and Apple Intelligence. The tech giant has also launched two projects: Linwood and Glenwood. These projects were launched to build Siri into a powerful AI companion and virtual assistant and to partner with companies who are already at the helm of AI development.
