Apple and Google are reportedly negotiating a potential deal that could bring Google’s Gemini generative AI capabilities to the iPhone. According to Bloomberg, the discussions aim to allow Apple to license Gemini’s AI models to enhance iPhone features later this year.
While such a deal would provide Gemini with access to a massive user base, it might also suggest that Apple is not as advanced in generative AI as some might expect. Industry analyst Paul Schell from ABI Research noted that Apple seems to be lagging in the AI space, partly due to the rapid pace of innovation that creates a disconnect between its annual developer conference in the summer and product launches in the fall.
Despite this, Apple has been active in developing its own AI technologies. The company has been working on on-device generative AI and has made strategic acquisitions, including DarwinAI, to support these efforts. Additionally, Apple has a dedicated Machine Learning Research division focused on advancing its AI capabilities, and CEO Tim Cook has highlighted the importance of generative AI in upcoming updates, such as iOS 18.
Part of Overall AI Strategy
Rob Enderle, president and principal analyst at the Enderle Group, suggests that Apple appears to be lagging in the AI space. He points out that although Siri was one of the first digital assistants, Apple seemed to lose momentum after its initial launch, contributing to its current position behind competitors in AI advancements.
William Kerwin, an equity analyst at Morningstar Research Services, notes that Apple has traditionally taken a cautious approach to new technologies, including generative AI. Instead of being first to market, Apple often focuses on refining and integrating new technologies into its products, prioritizing quality over speed.
Kerwin suggests that rather than developing its own generative AI models from scratch, Apple might prefer to license technology from other companies. A potential agreement with Google to use its Gemini AI models could fit this strategy, allowing Apple to integrate advanced AI features like those in Siri without needing to build the technology in-house.
Beneficial to Apple and Google
Tim Bajarin, president of Creative Strategies, highlights that Apple has a history of incorporating AI into its products, such as Siri and Maps. However, developing a robust generative AI model independently would be costly and complex. Licensing an existing AI architecture like Gemini could enable Apple to leverage proven technology while focusing on creating Apple-specific applications.
Charles King, principal analyst at Pund-IT, believes that licensing Gemini could help Apple catch up in AI development and maintain its commitment to user privacy. Using a third-party AI model would allow Apple to integrate advanced capabilities while preserving its reputation for safeguarding customer data.
Rise of On-Device AI
Ross Rubin, principal analyst at Reticle Research, points out that many current AI models require cloud access, raising concerns about privacy. However, Google’s Gemini Nano, which runs locally, might be attractive to Apple for its privacy benefits and on-device capabilities.
ABI’s Paul Schell notes that Google’s Gemini models are already running on some Pixel and Samsung devices. A partnership with Google could provide Apple with a mature AI solution, enhancing its devices with advanced generative AI features. Schell anticipates significant announcements related to on-device AI at Apple’s WWDC, typically held in June.
Boon to Apple Users
A licensing deal with Google could enhance Apple’s ecosystem by integrating Google’s advanced search capabilities, potentially improving search functionality and user experience. Mark N. Vena, president of SmartTech Research, suggests that this integration would offer benefits such as improved interoperability and reduced development costs for Apple.
Greg Sterling, co-founder of Near Media, notes that while Google currently pays Apple to be the default search engine on Safari, a licensing agreement might not involve direct financial payments. Instead, Google could offer its technology in exchange for continued access to anonymized user data from Apple’s platforms.
Apple and Google have not responded to requests for comment on this matter.