Apple has reshuffled its executives to recover from its shortcomings in the AI institutional sector. According to a Bloomberg report on the 21st (local time), Tim Cook, Apple’s Chief Executive Officer (CEO), has replaced AI institutional sector head John Giannandrea with Michael Rockwell, vice president in charge of the mixed reality (MR) headset "Vision Pro."
Giannandrea will step back from the Siri department and take charge of AI research and technology oversight. Giannandrea, who is from Google, led the Siri department since 2018, while Rockwell has been providing consulting to the AI group in recent weeks. Rockwell has publicly criticized Siri, and Giannandrea had named him as the successor. In addition, Senior Vice President Federighi is expected to oversee the iPhone, iPad, Mac operating system, and development tools.
Apple is expected to officially announce the executive changes this week. Bloomberg assessed that this reshuffle starkly illustrates Apple’s lack of competitiveness in the AI sector. Although Apple emphasized Apple Intelligence in the iPhone 16 series, some feature releases were delayed, and the company has failed to narrow the gap with competitors in AI development.
In relation to this, Apple has been sued for false advertising and unfair transaction practices regarding the iPhone 16. On the 19th (local time), consumers who purchased the iPhone equipped with Apple Intelligence filed a class action lawsuit in the U.S. District Court for the Northern District of California in San Jose. Apple acknowledged the development delay of "Apple Intelligence Siri," stating that it is expected to launch next year; however, it has been criticized for exaggerating this in advertisements. Moreover, it was revealed that Apple inserted disclaimers on its website and terms and conditions to handle this matter confidentially.
The attorney representing the plaintiffs stated, "Contrary to the AI capabilities advertised by Apple, the features provided were limited or nonexistent," stressing that "no remedies were pursued for the widespread consumer harm."
In South Korea, the Seoul YMCA is holding Apple accountable for false and exaggerated advertising and is urging fair transaction practices and a criminal complaint.