Replacing Tim Cook, John Ternus Tasked with Proving Apple's AI Strategy

NEW YORK, KOMPAS.com - John Ternus, who has just been appointed as Apple’s CEO, must show investors how the company can excel in artificial intelligence (AI) or artificial mimicry.

This is because Apple is considered to be lagging behind other giant companies.

As a leader, Tim Cook was indeed assessed to have successful performance as Apple’s CEO.

However, he leaves a large gap in the AI field.

For Ternus, the most important aspect of his new job is to push the company deeper into AI. So far, Apple has implemented an AI development strategy without spending large amounts of capital.

This approach differs from what is taken by Microsoft, Google, Amazon, and Meta.

Apple is indeed trying to invest hundreds of billions of US dollars per year in combined capital expenditure to fund data centres and fill them with expensive AI chips.

However, in developing foundational AI models, Apple still relies on Google’s Gemini to support its AI features.

This includes improvements to Siri, which are expected to be released at the end of this year.

In 2024, Apple launched Apple Intelligence, which includes an image generator, text transformer, ability to summarise notifications, and integration with OpenAI’s ChatGPT.

The consumer response has been varied, but Apple continues to sell iPhones in large quantities, and users get many AI options on those devices from other companies.

Apple is betting that in the next few years, heavy workloads will run on chips inside the phone.

This is believed to benefit the company because it has integrated AI capabilities into its devices since 2017.

An Assistant Professor of Management at the University of Notre Dame projects that Apple may still trust that idea about the future of AI.