Bloomberg: Apple using a ChatGPT-style app to test next-gen Siri

Apple is internally testing a 'ChatGPT-like app' to evaluate and prepare for the launch of its revamped Siri, anticipated next spring. This internal tool, not intended for public release, helps assess new AI features and the utility of a chatbot format, despite Apple executives' stated preference for deeply integrated AI experiences over standalone chatbots. The company is developing two versions of Siri, leveraging both proprietary and external AI models, and is also reportedly working on an 'Answers' project for a ChatGPT-like search experience, underscoring its significant investment in advanced AI capabilities.

Analysis

Apple (AAPL) is actively developing its generative AI capabilities, evidenced by the internal testing of a 'ChatGPT-like app' to refine a revamped version of Siri slated for launch next spring. This internal tool is being used to evaluate new features and the utility of a chatbot format, even as company executives like Craig Federighi have publicly prioritized AI experiences deeply integrated into the operating system over 'bolt-on' applications. This suggests a pragmatic, multi-faceted approach to product development. The strategy includes developing two versions of the new Siri system: one powered by Apple's proprietary AI models and another leveraging external models from partners such as Google (GOOGL). This dual-path development indicates a strategy to mitigate risk and accelerate time-to-market. Furthermore, a separate 'Answers' project aims to create a new AI-driven search experience, signaling a broader strategic ambition to compete in core generative AI services beyond just a voice assistant upgrade.

Key Decisions for Investors

• Investors should view the 'next spring' launch timeline for the revamped Siri as a significant near-term catalyst, as it marks a critical milestone in Apple's strategy to address perceptions of it lagging in artificial intelligence.
• The dual-track development using both internal and external (e.g., Google) AI models is a key strategic point to monitor, as it could impact both R&D costs and the competitive positioning of Apple against Alphabet in the AI space.
• Consider the 'Answers' project as a long-term strategic option that could potentially disrupt the search market, creating a new revenue vector for Apple and a direct competitive threat to Google's core business.