Apple Faces Major Challenges Updating Siri With AI Capabilities

As Apple prepares to host its annual Worldwide Developer Conference (WWDC), insiders and investors alike are expressing concern over the company's progress in artificial intelligence (AI). Specifically, Apple is facing mounting difficulties in updating Siri, its flagship voice assistant, with next-generation large language models (LLMs) to remain competitive in the AI race.

Siri’s AI Makeover Hits Technical Roadblocks

Former Apple employees revealed to the Financial Times that attempts to modernize Siri using Apple’s own LLMs have led to persistent bugs and system inconsistencies. These complications arise from efforts to adapt older machine learning architectures, originally designed for Siri, into a conversational AI framework more aligned with generative models pioneered by OpenAI and Google.

It was obvious that you were not going to revamp Siri by doing what executives called ‘climbing the hill’... It’s clear that they stumbled.

Former Apple Executive

Apple Intelligence and Investor Concerns

The Siri updates are central to Apple Intelligence, a suite of AI tools introduced at WWDC last year aimed at boosting hardware sales and ecosystem engagement. However, recent reports suggest the anticipated AI overhaul may fall short of expectations. The Wall Street Journal noted a 20% drop in Apple’s stock its worst performance in over 15 years citing broader AI concerns and global economic pressures.

Competitors such as Microsoft and Google have showcased rapid AI advancements at their respective developer events. In contrast, analysts predict that Apple will adopt a more reserved strategy this year, avoiding the announcement of features still under development.

Apple will be much more cautious about overpromising and will refrain from showing features that aren’t yet ready for prime time.

Craig Moffett

Beyond AI: Legal and Geopolitical Challenges

Artificial intelligence is just one of Apple’s many concerns. The company is currently facing geopolitical headwinds, including tariff threats that may erode hardware margins. Former President Donald Trump is also urging Apple to shift away from its overseas manufacturing strategy, which has long underpinned its global supply chain.

Meanwhile, Apple’s services division, which generates 74% in gross margins, is under legal scrutiny over App Store fees and billions in annual payments from Google in exchange for being the iPhone’s default search engine.

A Defining Moment for Apple

WWDC 2025 may serve as a critical inflection point for Apple. As AI reshapes the future of consumer technology, the pressure to deliver innovative, functional, and secure solutions is unprecedented. Whether Apple can navigate these internal and external obstacles will define its leadership in the next era of intelligent computing.