Apple's AI Team Undergoes Major Restructuring Amidst Performance Concerns

Apple Inc. (NASDAQ:AAPL) has embarked on a major overhaul of its artificial intelligence (AI) and machine learning divisions, shifting elements to different departments within the organization.

Bloomberg's Mark Gurman, in his latest weekly "Power On" shared that Apple’s AI team, previously unified under the guidance of John Giannandrea, is being fragmented due to subpar performance. Giannandrea, an ex-Google executive, joined Apple in 2018 with the mission to consolidate Apple’s dispersed AI projects and supervise the evolution of Siri and other AI-centric initiatives.

However, the unified strategy has not met expectations after six years. Apple’s AI ventures, including Siri, have fallen behind rivals such as Amazon.com Inc.‘s (NASDAQ:AMZN) Alexa and Google Assistant. Apple Intelligence, the company’s AI product launched last year, has also disappointed, with several features being delayed.

Consequently, Apple is reverting to its former management structure. Siri has been handed over to Vision Pro head Mike Rockwell, who now reports to software chief Craig Federighi.

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The company’s covert robotics group has also been shifted from Giannandrea’s leadership to Apple’s hardware engineering department, headed by John Ternus.

The restructuring is perceived as a reaction to the AI team’s failure to deliver products promptly, a luxury Apple can no longer afford. The changes have also sparked rumors that the company is gearing up for Giannandrea’s potential exit.

Why It Matters: The restructuring of Apple’s AI team is a significant move, reflecting the company’s struggle to keep pace with competitors in the AI space.

The shift in management structure indicates a strategic shift as Apple aims to improve its AI offerings. The performance of Apple’s AI initiatives, particularly Siri, has been a point of concern, and this restructuring could be a step towards addressing these issues.

The move also suggests potential changes in Apple’s leadership, hinting at a possible departure of Giannandrea.

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