AI showdown continues: Is Apple still losing ground to Google, Microsoft?

Dubai: Apple may be known for sleek devices and smooth software, but when it comes to artificial intelligence, the company appears to be playing catch-up.

While Google and Microsoft race ahead with cloud-based, enterprise-ready, and consumer-visible AI tools, Apple is pursuing a more cautious, privacy-first strategy—one that may cost it momentum in what’s quickly becoming the defining tech race of the decade.

Google and Microsoft have both invested heavily in AI for years. Google’s pioneering work with DeepMind and Google Brain, coupled with its proprietary TPU chips and vast cloud infrastructure, made it a leader before generative AI hit the mainstream. Its Gemini AI model is already deeply embedded into Google Search, Workspace, Android, and Pixel devices.

Microsoft, meanwhile, placed a strategic bet on OpenAI and integrated its AI tools across its product ecosystem. Copilot in Microsoft 365, and AI features baked into Windows 11 and Azure Cloud, have turned Microsoft into a serious AI powerhouse, especially for businesses.

Apple’s answer to the AI moment is Apple Intelligence, a suite of tools focused on on-device processing, privacy, and practical use cases. From rewriting emails and summarizing notifications to editing photos and improving Siri (eventually), Apple is leaning into a "Goldilocks" strategy—not too ambitious, not too basic.

But there’s a catch: many of Apple’s most anticipated AI features—like Siri 2.0 with deep contextual awareness—aren’t arriving until 2026. Some, like AI-generated images via Image Playground, require off-device ChatGPT access. Even Apple’s privacy-focused approach means fewer big breakthroughs in generative AI compared to its rivals.

One reason Apple is behind: it entered the generative AI race later and lacks the massive AI infrastructure of Google or Microsoft. Reports suggest Apple has even relied on Google’s cloud and TPUs for model training. Its AI chips and data center capabilities simply aren’t on the same scale.

Moreover, many Apple AI features are only supported on the latest Apple Silicon chips, excluding a large chunk of users. In contrast, Google’s Gemini and Microsoft’s Copilot work across a wider range of devices and operating systems.

Where Apple shines is in practical, everyday AI tools that seamlessly blend into the user experience. For example, its Visual Intelligence update now lets users interact with screenshots and search the web—similar to Google’s "Circle to Search" but integrated into iOS.

Apple has also delivered on localized tasks like rewriting text, photo editing, and Genmoji, proving it’s capable of execution—even if slower to market.

Unlike competitors pushing cloud-heavy AI, Apple is investing in efficient, energy-conscious on-device AI. As AI models shrink and improve (like Google’s Gemma or Microsoft’s Phi), Apple’s approach may resonate with environmentally aware consumers and those cautious about data privacy.

Apple’s AI delay might already be having consequences. iPhone sales dipped 5% last quarter, and lawsuits in Canada accuse Apple of misleading advertising—promoting Siri 2.0 features that still haven’t launched.

Consumers who bought the iPhone 16 expecting advanced AI have been left waiting, while Samsung’s Galaxy S25 Ultra already offers similar AI features via Google.

Still, Apple’s market share hasn't collapsed. iOS still beats Android in many regions, and macOS continues to chip away at Windows’ dominance. But if Apple can’t convince users its AI strategy is competitive, the cracks could widen.

In some ways, yes. Apple’s AI ecosystem lacks the scale, speed, and versatility of Google and Microsoft’s offerings—especially in cloud AI, enterprise integration, and AI assistants. But it’s not all bad news. If Apple plays to its strengths—seamless UX, privacy, and on-device power—it could still win over users in the long run.

The real test will be in 2026, when Apple is expected to finally roll out the full Siri upgrade and broader generative AI features. Until then, the company risks looking like it’s stuck in second (or third) gear while its rivals speed ahead.