Apple has adopted a cautious AI strategy that may finally show tangible results in 2026. According to reports, on-device intelligence and ecosystem control are playing a major role in the tech giant’s ongoing projects. While rivals raced ahead, Apple focused on privacy-first AI, which provided the foundation for a strong comeback.
Apple’s competitors, such as OpenAI, Google, and Meta, are investing hundreds of billions of dollars in data centers, chips, and large-language-model training. At the same time, iPhone makers took a restrained approach with AI innovations. Industry experts once thought that Apple was falling behind in the AI space.
Analysts also criticised Siri for lagging behind more advanced, capable, and reliable conversational systems. Amidst all these criticisms, Apple is reportedly set to regain its position in the tech market.
Apple has decided to limit AI-specific capital expenditures, leaving it with more than $130 billion in cash and marketable securities. It gives the company the option to pursue acquisitions or partnerships if the valuations of AI startups fall.
The iPhone maker has treated AI as a way to integrate into its products, not as a standalone business that requires endless infrastructure investment.
The company’s biggest AI-related move will be the long-anticipated overhaul of Apple Siri. It is expected to arrive in the spring of 2026. The updated assistant is set to be more conversational and capable of completing multi-step tasks.
Apple is adopting Google's Gemini, which shows “an internal view that large language models may become commoditized and not worth the cost of large-scale proprietary development,” according to Macrumors.
Experts believe that the iPhone is a key strategic advantage for Apple. While other AI companies depend on standalone apps and web services, Apple can distribute AI features directly through software updates and system-level integrations across its devices.
Apple already has a strong foothold in hardware development and distribution.
Apple has reshuffled leadership around Siri and AI. Siri has been placed under Mike Rockwell, who was responsible for launching the Vision Pro headset.
Apple's AI chief, John Giannandrea, announced his retirement earlier in December. His team was redistributed amid internal concerns regarding a lack of clear product direction. These changes point to Apple's effort to refocus its AI work.
Also Read: Apple May Power Next-Gen Siri with Google’s Gemini AI Boost
After it failed to deliver the AI upgrade it promised at WWDC 2024, the iPhone maker adopted a more restrained stance on AI. Apple faced massive criticism for delaying Siri upgrades. However, the company’s core businesses have remained strong, and the focus now is on one simple outcome: a Siri that feels modern.
If Siri delivers those expectations, Apple can turn criticism into praise. Time will tell when these AI-related efforts will pay off. Until then, analysts will continue to speculate on the tech giant’s moves.