Apple's AI Blunders Lead to Legal Battles

Apple promised to make Siri smarter. Instead, they face lawsuits from angry customers and internal chaos over failed AI features.

Apple's AI Blunders Lead to Legal Battles

According to The New York Times, Apple's AI problems started with old hardware. While competitors Microsoft and Meta used hundreds of thousands of new AI chips, Apple ran on just 50,000 aging GPUs. In early 2023, AI chief John Giannandrea asked CEO Tim Cook for more. Cook agreed to double the budget, but CFO Luca Maestri cut that increase in half.

This meant borrowing computing power from rivals Google and Amazon. Meanwhile, two software teams fought over who would lead Siri's upgrade. Robby Walker and Sebastien Marineau-Mes split the project between them.

At WWDC 2024, Apple showed off ambitious plans. The new Siri would scan emails and messages to answer questions about travel plans. It would summarize news and improve writing. But when features arrived in October, they failed. News summaries mangled facts so badly Apple shut them down. Tests showed Siri got things wrong 30% of the time.

Software chief Craig Federighi responded by reshuffling executives. He took AI duties from Giannandrea and gave them to Mike Rockwell, who runs the Vision Pro headset program.

Now customers want refunds. A California lawsuit claims Apple broke advertising laws by marketing features that don't exist. Two iPhone 16 buyers say they wouldn't have paid premium prices for an AI assistant that doesn't work. A similar case opened in British Columbia.

The crisis reveals deeper problems at Apple. Design chief Jony Ive left in 2019, taking top talent with him. Dan Riccio, who helped create the Apple Watch, retired last year. Their replacements lack experience launching major products.

Apple plans a simpler upgrade this fall – Siri will edit and send photos. But experts think the full features won't arrive until 2026. Some Apple leaders dismiss the delays, noting Google and Meta haven't mastered AI either.

The original deadline was WWDC 2025 this June. Now Apple talks about "the coming year" – corporate speak for "we don't know when."

Why this matters:

  • Even with $3 trillion in market value and world-class engineers, Apple failed to make a virtual assistant understand basic requests. Using five-year-old chips didn't help.
  • The lawsuits show tech companies can't just promise AI features – they need to deliver them. Hype now comes with legal risks.

Read on, my dear:

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