Apple Shakes Up AI Leadership to Revive Siri: What You Need to Know

In a bold move to reignite its artificial intelligence ambitions, tech giant Apple (AAPL) has announced a significant executive shake-up. This strategic change comes as the company works to address growing concerns about its flagship voice assistant, Siri, and to enhance its overall AI framework.

Tim Cook's Lack of Confidence Sparks Changes

According to a report from Bloomberg, Apple CEO Tim Cook has reportedly lost faith in AI head John Giannandrea's ability to drive forward the development of Apple Intelligence products. In a surprising turn of events, Cook has tapped Mike Rockwell, the current vice president of the Vision Products Group and the creative force behind Apple Vision Pro, to take the reins of Siri. This shift suggests a desire for a more robust approach to AI at Apple, especially as it strives to keep pace with competitors like Amazon, whose Alexa has rapidly advanced with newer generative AI features.

New Leadership for Siri

Under this new structure, Rockwell will now report directly to Craig Federighi, Apple’s software chief, effectively removing Siri from Giannandrea's oversight. While Giannandrea will remain with the company, focusing on research and testing of other AI technologies, the executive changes are set to be revealed to Apple employees this week.

This shake-up follows a nearly secretive annual meeting of Apple’s senior leadership, known as the Top 100, where discussions about the company's future, particularly concerning AI, took center stage.

Siri’s Struggles Highlighted

The urgency of this leadership change is underscored by reports of Siri's persistent issues, especially in comparison to Alexa's superior performance. Concerns have grown that a fully modernized version of Siri may not materialize until the launch of iOS 20 in 2027. This timeline seems increasingly obsolete when juxtaposed with Amazon’s recent introduction of an upgraded, AI-driven Alexa.

Recent criticisms of Siri have gained traction, with reports indicating that the assistant struggled to answer basic queries like “What month is it?” These challenges have prompted Robby Walker, the executive overseeing Siri, to label recent delays in AI development as “ugly and embarrassing.” Notably, Rockwell has previously shared ideas for revamping Siri, emphasizing a need for a more personalized user experience and has been actively advising the AI team in recent weeks.

Is Apple Stock a Buy Right Now?

As Apple navigates this tumultuous period in its AI journey, investors may be wondering about the stock's potential. According to TipRanks, AAPL currently holds a consensus rating of Moderate Buy, with analysts offering 17 Buy, 11 Hold, and 4 Sell ratings. The highest price target set for AAPL is $325, while the consensus price target stands at $249.88, indicating a potential upside of 17.20%.

As Apple's AI strategy unfolds, all eyes will be on how these leadership changes impact Siri's performance and, ultimately, the company's market position in the competitive tech landscape. Will these moves be enough to turn Siri into a contender against rivals in the space? Only time will tell.