Apple Has a Plan to Get Some AI Stock Buzz, Report Says. It Involves Google.

Apple has repeatedly delayed expected upgrades to its Siri digital assistant. (Dreamstime)

Apple is still looking for a way to get into the artificial-intelligence game. According to a report, the iPhone maker’s latest plan is its own AI search tool, but it might still have to rely on Google for the technology.

Apple got a boost this week from news that Google-parent Alphabet is set to keep paying billions annually to be the default search provider on iPhones. However, Apple is still missing out on the AI boom, with shares down 4.7% this year so far.

The company desperately needs to update its digital assistant Siri. It hopes to incorporate a new search tool, including an AI-powered summarization system to compete with similar options provided by OpenAI’s ChatGPT and other chatbots, according to a Bloomberg report on Wednesday, citing unnamed sources. Apple has reached an agreement to test a Google-developed AI model to help power the tool, the report said.

Apple and Google didn’t respond to a request for comment.

As Barron’s has previously written, depending on an external AI provider would be a big and somewhat embarrassing change for Apple, which has generally prided itself on its ability to maintain strict control over its own platforms.

However, at this point that might be necessary for Apple to get some buzz going ahead of the expected launch of the iPhone 17 range this fall. Apple has lost a number of in-house AI researchers to high-paying rivals such as Meta Platforms , and doesn’t appear to be close to developing internal technology which can compete with features being integrated on rivals’ devices.

While some Wall Street analysts have suggested that Apple could get AI capabilities by buying search platform Perplexity, Bloomberg reported that the company has discarded that option but remains on the hunt for deals.

Write to Adam Clark at adam.clark@barrons.com