Apple Finally Admits It’s Behind in AI, Now It’s Throwing Money at the Problem

Tim Cook’s rare all-hands address in early August signaled a strategic pivot: Apple is doubling down on AI. Budgets are expanding, M&A ambitions are growing, and moon-shot ideas are getting the green light. The subtext is unmistakable—perfectionism can’t compete with ChatGPT’s ready-to-use capabilities in planning holidays, dinners, or even personal crises.

Apple Intelligence, unveiled at WWDC 2024, promised on-device text summaries, image generation, and a Siri overhaul. Yet the Siri enhancements remain elusive, now delayed until spring 2026. Google’s Pixel 10 ads openly mock Apple’s "coming soon" culture. While Apple defends its cautious approach—arguing that privacy guardrails are non-negotiable—consumers are losing patience as rivals deliver functional AI assistants today.

iPhone sales remain steady, but only 13% of recent buyers cited AI features as a motivator. Investors draw parallels to the late-Intel-Mac era, where loyalty eventually frayed. LightShed Partners delivered a blunt verdict: Cook may no longer be the right CEO for an existential AI race.