Apple iPhone might be AI deficient now, but this could change next year

Will Apple be able to change its reputation as an AI laggard?

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Screenshots of Apple Intelligence on four iPhone displays.
The Google Pixel 10 series arguably is the phone series that makes the best use of AI. I can tell you that using Gemini as my digital assistant has been absolutely amazing and that is on my Pixel 6 Pro. My queries to Gemini get in-depth responses. While only available on the Pixel 10 series, Google's use of AI to create the Magic Cue also is a standout. While most assistants need you to request data, the Magic Cue is proactive. Without asking for any information, your phone figures out what you are doing and posts information on your display saving you time and effort.

Apple has received criticism for its underwhelming Apple Intelligence


For example, let's say you need to change your reservation on Puddle Jumper Airline. As soon as you call and the phone is answered by customer service, you have all of the information you need when speaking to the agent right in front of your eyes inside a small overlay on your phone display. Your Flight Number, Confirmation Code, and Seat Number are shown to you even before the airline asks for them. The Magic Cue goes through your messages, emails, and photos to give you the data you need without you having to ask for it.


The Pixel 10 series also features the useful Camera Coach, which uses AI to help show a Pixel user how to use his camera to take better photos. 

Meanwhile, Apple has received criticism for its less that useful Apple Intelligence, which was introduced in 2024. Apple is considered to be well behind Google in the AI race partially because contextually aware Siri has been delayed. Like the Magic Cue, the new Siri s supposed to be able to go through your texts, emails, photos, and calls to answer your personal questions. Unlike the Magic Cue, you'll have to ask Siri a question first since it won't be proactive.

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Will Apple ever catch up in AI?


While Apple hasn't impressed anyone with Apple Intelligence, some might say that Apple has its rivals just where it wants them. After all, the Tech Giant is known for taking a product already on the market (such as a smartphone) adding its own special sauce (touch screen UI and Multi-Touch) to create a market dominating device (such as the iPhone).

Apple has plenty of cash to spend on an AI acquisition, but history says it won't


With this in mind, a report from The Information says that Apple has kept its powder dry when it comes to spending money on AI. While others have spent hundreds of billions to build data centers powered by huge amounts of GPUs, Apple has not. This leaves the company with $132.4 billion in cash and liquid securities that it can use to spend on AI based acquisitions.

If Apple does start spending in order to play catch up in AI, it might need to spend more on an acquisition than it ever did before. The company's largest acquisition was the 2014 purchase of Beats Music for $3 billion. Apple traditionally does not make huge, splashy, and expensive purchases of other companies. Would Tim Cook change this if a single deal would put Apple on the map when it comes to AI? It is possible. During the summer there was speculation that Apple was going to buy Perplexity AI, a deal that could have cost Apple $14 billon.

Google and Apple supposedly have a $1 billion a year AI deal for


Last month Bloomberg's Mark Gurman reported that some of Apple's cash, reportedly $1 billion a year, will go to Google for a custom 1.2 trillion parameter artificial intelligence model of Google's Gemini Large Language Model (LLM). Supposedly, the plan is for Apple to use Google's Gemini until its own models are powerful enough to run the show.

Many iPhone users are eagerly awaiting iOS 26.4, which is supposed to debut the new and improved Siri. If there are no more delays and Siri lives up to expectations, it might certainly view how Apple Intelligence is viewed. Frankly, though, it might take much more than that to make it feel as though the iPhone has become a worthy AI challenger to the Pixel.

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