Apple is set to enhance a number of its services, including a more personalised iteration of its virtual assistant, Siri, with artificial intelligence provided by Google.
The two tech giants announced a “multi-year collaboration” in which Apple will integrate key aspects of Google’s Gemini AI models into its own technology ecosystem.
In a joint announcement, the companies said the partnership would enable “innovative new experiences” for Apple users.
However, experts argue the deal highlights how Apple’s traditionally cautious approach to developing and deploying AI has left the company dependent on external providers. By relying on Google for the foundational layer of its AI, Apple is effectively acknowledging that its internal efforts could not match the capabilities and scale of Google’s Gemini models in the short term, according to IDC analyst Francisco Jeronimo.
He told the BBC that while the move represents “a significant and pragmatic strategy” for Apple, it also represents a departure from the company’s historical approach to technology development.
“Apple has historically sought to own every layer of its technology,” Jeronimo said, adding that this approach previously gave the company a competitive advantage over rivals.
Still, he and other analysts suggested the collaboration is likely to be positively received by consumers, particularly given rising demand among iPhone users for AI-enabled features, as competitors like Google and Samsung continue to introduce similar capabilities on their devices.
Tech analyst Paolo Pescatore noted that Apple’s recent financial results indicate AI has not been the primary factor driving iPhone purchases.
“But this is expected to change gradually as AI-powered services become more widely adopted,” he told the BBC.
This is not Apple’s first partnership with an AI firm. In June 2024, the company announced a similar collaboration with OpenAI, the creator of ChatGPT, integrating the popular chatbot into its suite of generative AI tools known as Apple Intelligence.
Google and Apple said in a joint statement on Monday that Apple Intelligence will continue to operate within Apple’s Private Cloud Compute infrastructure.
“After careful evaluation, Apple determined that Google’s AI technology offers the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will bring to Apple users,” the statement said.
“Apple Intelligence will continue to run on Apple devices and within Private Cloud Compute, while preserving Apple’s industry-leading privacy standards.”
Potential regulatory concerns
Few details are known about the financial terms of the Google-Apple agreement beyond the joint statement on Monday.
However, previous arrangements to integrate Google software into Apple devices have been reported to be worth billions of dollars.
Jeronimo said that while iPhone users familiar with Google’s ecosystem may not be particularly concerned about Google powering some Apple AI features, the deal is “likely to raise red flags” among regulators.
Before a US court ruling in August 2024, it emerged that Google had operated an illegal online search monopoly and had paid more than $26 billion in 2021 alone to companies, including Apple, to ensure its search engine remained the default on iPhones.
European and UK authorities have also expressed concerns about large tech partnerships, citing the potential for dominant companies to leverage their market power and wealth to reinforce control over key sectors.
In October, the UK’s Competition and Markets Authority (CMA) stated that Apple and Google together effectively constitute a “duopoly” in the country.
The CMA designated both companies as holding “strategic market status,” granting the regulator the authority to demand changes if it determines a firm has excessive market power.
