Apple’s leadership shift marks a ‘major reset’ in AI strategy

Out is its top AI leader, John Giannandrea, who presided over the company’s struggles to release a cutting-edge AI product while its chief rivals and many of its consumers forged ahead.

In is Amar Subramanya, an AI exec from Microsoft, who previously spent 16 years at Google and served as the head of engineering for the Gemini assistant.

“We believe that this was a major reset while expecting more outside hires from Cook & Co. to get Apple on the right track when it comes to AI,” wrote Wedbush analyst and Apple bull Dan Ives in a note on Tuesday.

The changeup comes after Apple’s highly touted AI updates to Siri have been delayed until next year, adding to the perception by analysts and investors that it missed the AI train. But it also comes after an impressive quarter powered by strong iPhone sales, showing that the company can still afford to take its time.

The late-to-the-party AI strategy does have its virtues. While its would-be competitors were wading through botched AI rollouts, boardroom drama, and initial public backlash, Apple waltzed in with Apple Intelligence, sidestepped the mess, and welcomed analysts’ praise for a more thoughtful approach to AI tailored to its products rather than a commoditized version that client companies can swap out.

A year and a half later, that argument has evolved, with negligible excitement and vague participation in the AI game painting the company as merely behind.

“The elephant in the room remains the invisible AI strategy,” wrote Ives. “The innovation coming out of Apple Park has been very disappointing so far.”

The leadership change signals a shift to come. Apple is expected to finalize a new partnership with Google, using the search giant’s Gemini AI model to power an overhauled Siri assistant. Apple, it appears, is already picking from the winners, content to be in the customer’s seat rather than a provider’s.