Apple Scrambles To Fix Siri’s AI Failures After Public Misstep—Top Executive Admits Marketing It Too Soon Made Things Worse – Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Apple Inc. AAPL is reportedly facing internal turmoil as it struggles to fix major AI failures in Siri, with a top executive calling the delays ugly and embarrassing after the company prematurely marketed features that weren’t ready.

What Happened: During an all-hands meeting for Apple’s Siri division, senior director Robby Walker acknowledged the frustration among employees over the repeated delays of key AI-powered Siri enhancements, reported Bloomberg, citing people familiar with the matter.

“This was not one of those situations where we get to show people our plan after it’s done,” Walker told staff, referring to Apple’s demonstration of its AI features at WWDC. “We showed people before.”

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Walker admitted that Apple’s marketing team made the situation worse by promoting the upcoming Siri features in TV commercials and branding campaigns despite knowing they were not ready for launch.

Initially expected in early 2024, the AI-powered Siri enhancements—designed to improve personal assistant functionality, data integration, and app control—have been repeatedly delayed due to performance issues.

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Walker said Apple found that the features only worked properly two-thirds to 80% of the time, meaning they failed one out of every three attempts.

Apple now aims to roll out the improvements in iOS 19, but Walker warned that even this timeline is uncertain, citing competing priorities within Apple’s software and hardware teams.

Why It’s Important: The delays highlight Apple’s ongoing struggles in AI, particularly as competitors like OpenAI, Alphabet Inc.’s GOOG GOOGL Google, Amazon.com, Inc. AMZN and Microsoft Corporation MSFT advance rapidly. 

Siri has lagged behind rivals, and these setbacks reinforce concerns about Apple’s ability to compete in the AI space.

Apple’s AI missteps come as the company faces a 12.45% stock decline year-to-date amid broader market struggles.

Earlier this week, Morgan Stanley raised concerns over Apple’s AI delay, cutting its price target from $275 to $252. 

Meanwhile, in a bid to regain its footing, Apple has reportedly partnered with Alibaba Group Holding Ltd BABA to enhance AI features in iPhones for the Chinese market. This collaboration could be crucial for Apple’s efforts to reclaim market share in China.

Price Action: Apple’s stock closed at $213.49 on Friday, rising 1.82% for the day. However, after-hours trading saw a slight decline of 0.094%, according to Benzinga Pro data.

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Photo courtesy: Apple