Apple builds AI search team to challenge ChatGPT and Google

Apple is reportedly developing an AI-powered search tool to compete with ChatGPT and Google’s Gemini, according to Bloomberg’s Mark Gurman. The project signals a strategic shift for the tech giant, which previously dismissed building its own chatbot but now faces mounting pressure to establish a stronger presence in the rapidly growing AI search market.

What you should know: Apple has assembled a new team called Answers, Knowledge and Information (AKI) to build what they’re internally calling an “answer engine.”

• The team is led by Robby Walker, who reports directly to Apple’s AI chief John Giannandrea.
• The project aims to create AI-powered search capabilities similar to those offered by OpenAI’s ChatGPT and Google’s Gemini AI.
• Currently, Apple lacks a standalone product in this category, relying instead on ChatGPT integration for Siri and Apple Intelligence web searches.

The big picture: This represents a notable reversal from Apple’s earlier stance on AI chatbots, driven by changing market dynamics and internal challenges.

• After unveiling OpenAI as its first AI partner at WWDC24, Apple had dismissed building its own chatbot, citing insufficient consumer interest.
• Since then, generative AI chatbots have surged in popularity, with approximately 36% of users now preferring them over traditional search engines.
• Several AI-powered Siri features announced at WWDC24 have yet to roll out, leading to lawsuits and internal reorganization.

Expanding capabilities: The AKI team is also working to enhance search functionality across Apple’s existing products.

• They’re exploring improvements to Siri’s search capabilities, along with Spotlight and Safari.
• The team is evaluating whether the rumored “answer engine” could fill Apple’s current gap in standalone AI search tools.

What they’re saying: CEO Tim Cook has made bold statements about Apple’s AI ambitions during internal meetings.

• “Apple must do this. Apple will do this. This is sort of ours to grab… We will make the investment to do it,” Cook told staffers in an all-hands meeting.
• He believes the AI revolution is “as big or bigger” than the internet, smartphones, cloud computing, and apps.
• Cook drew parallels to Apple’s history of successful late entries: “We’ve rarely been first… There was a PC before the Mac; there was a smartphone before the iPhone; there were many tablets before the iPad; there was an MP3 player before iPod.”

Current AI offerings: Apple’s primary AI product remains Apple Intelligence, which offers limited but growing capabilities.

• The platform can summarize content, compose or rewrite text, edit photos, and generate Genmoji images.
• Translation capabilities are expected to arrive soon, expanding the platform’s functionality.