Apple's AI Ambitions Face Mounting Challenges Amid Internal Struggles and External Pressures

Apple's foray into artificial intelligence is encountering significant obstacles, as internal leadership changes and external economic pressures complicate the company's efforts to advance in the AI domain.

The much-anticipated upgrade to Siri, Apple's voice assistant, has been delayed, with a fully conversational version now expected no earlier than 2027. This postponement follows internal conflicts, including the replacement of former AI chief John Giannandrea in March 2025, and reported power struggles among senior executives. Former employees have described the AI division as lacking clear direction and ambition.

Financial constraints have further hindered progress. In 2023, CEO Tim Cook's proposal to substantially increase the AI chip budget was curtailed by CFO Luca Maestri, limiting the team to improving efficiency on outdated chips. This decision has placed Apple at a disadvantage compared to competitors like Microsoft and Google.

Externally, escalating U.S.-China tariffs are impacting Apple's supply chain and increasing production costs. The company has resorted to airlifting iPhones to India to bypass tariffs, a move that diverts funds from research and development, potentially delaying new product launches and reducing technological advancements.

Despite these challenges, Apple has committed to a $500 billion investment in the U.S. over the next four years, focusing on AI infrastructure, silicon development, and the creation of approximately 20,000 research and development jobs.

Analysts remain cautiously optimistic, noting that while Apple's AI developments have not significantly enhanced iPhone sales, the company's strategic investments could bolster its position in the long term.

As Apple navigates these complex dynamics, its ability to address internal inefficiencies and adapt to external economic conditions will be critical in determining its success in the rapidly evolving AI landscape.