Serious questions emerge about Apple’s ability to deliver AI on its iPhones

Enrique Dans
Enrique Dans
Published in
3 min readMar 19, 2024

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IMAGE: An Apple logo with an iPhone inside, and in the screen, the Google Gemini and the OpenAI logos with a question mark in between

Bloomberg reports that Apple is in talks to use Google Gemini to power iPhone AI features.

In addition, the company has had similar contacts with the same intentions with OpenAI, although the agreement with Google would be simpler, as it’s part of the existing deal between both companies that would make Google the default search engine in its devices, which brings the company an estimated revenue of $18 billion per year, and that has been under scrutiny by the antitrust authorities for some time.

Why is Apple interested in generative AI? First, because it is lagging far behind in the technology, and needs to rely on third-party agreements to offer its users this feature. Secondly, Google is incorporating it into its Pixel8 smartphones, as well as Samsung’s more advanced smartphones and, eventually, other advanced Android models, as its advertising shows, this is damaging the iPhone’s market prospects.

Apparently, the company intends to develop generative artificial intelligence features that would run on the iPhone, but is still not competitive enough when it comes to features such as text or image generation, which require more advanced levels of computation that, for the time being, need to be carried out in the cloud. This could mean that the agreement does not…

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Enrique Dans
Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)