Apple Investors Give Lukewarm Reaction to New Siri, AI Platform

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This is Bloomberg Businessweek Daily, reporting from the magazine that helps global leaders stay ahead, with insight on the people, companies, and trends shaping today's complex economy, plus global business, finance, and tech news as it happens. Bloomberg Businessweek Daily, with Carol Massar and Tim Stenovec, live on Bloomberg Radio, Television, and Bloomberg Originals.

**Carol Massar** (0:34)
Well, Apple investors have spent nearly two years clamoring for the iPhone maker to make a big splash with artificial intelligence. So the question is, are we getting it? We do already have some headlines that have crossed the Bloomberg and are on our live blog about Apple's annual Worldwide Developers Conference, which is underway in Cupertino, California, and that's where we go and where we find our own Ed Ludlow. He's co-host of Bloomberg Technology, Bloomberg Tech on Bloomberg TV at 11 a.m. Wall Street Time, Monday through Friday. Ed, good to have you here with Tim and myself. 1 p.m. keynote, it has been underway for over an hour. What's new and interesting and are we getting answers when it comes to AI and Apple?

**Ed Ludlow** (1:14)
What's new is Siri AI, a rebrand. It comes in the form of a standalone app that is new. It has more of a chat bot style interface that is new.
These are the features that Apple for a long time was promising that eventually Siri would be able to deliver on. The share move in the moment was so interesting. Because a lot of this, Bloomberg's Mark Gurman has reported, this would happen, he basically nailed every single detail. But the pre-recorded, it's a pre-prepared, pre-recorded keynote. The moment Siri AI goes up on the screen, and even confirmation it's a standalone app, the stock goes to a session high 2.7 percent. We're now softer by half a percentage point. So I don't know whether you guys would call that sell the news situation, but really interesting to see Apple demoing things that everyday people would actually use, things that are actually useful rather than some hyperbole.

**Tim Stenovec** (2:11)
Like what, Ed, when it comes to AI and the way that Apple has embraced or has not embraced AI at this point?

**Ed Ludlow** (2:20)
Yeah, so one of the key features of this, or at least the key points of technology is that Siri AI is interoperable between the different OSs. So you can use it on your iPhone through iOS, carry it over into a piece of work or project on Mac OS, iPad OS, etc. You get the idea. That is useful because if you are on an Apple device user and you're using its operating system for your email, where you work, your photos, you can drag it around and that actually is something that they demoed quite a lot.
What is interesting about this, you guys know what Mark Gurman's like, right? When how he would describe things. I'm trying to play it straight down the road. But the thing that's really interesting about it, and they kind of afflicted this in the Top Live blog, a lot of this functionality, it's already available in the market that Apple is trying to go after, which is Gemini can do a lot of this and ChatGPT, not just as underlying technology, but as tools. They already do a lot of that interoperability, but yeah, it was quite convincing.

**Carol Massar** (3:23)
All right. Convincing, quite convincing. That's a big step in an endorsement. What's missing though here?

**Ed Ludlow** (3:32)
Something just barnstormingly new. Again, with the added context for your listeners, that if you think through the lens of why the stock's behaving the way it is, this is kind of selling the news. A lot of what was announced has been out there. For example, this generation of Siri AI, the underlying foundation model is in cooperation with Google and Gemini.
A mix of Apple's in-house models and Gemini as a model. We knew that was going to be the case, and it's been confirmed as being the case. But it does seem to be something that's allowed Apple to make Siri more interesting in what they're doing in each of the phases of the presentation. It's basically saying, how would you sit at your Mac or how would you spend time on your phone and actually use it?
It's just logical stuff. For example, if you're writing an e-mail, open Siri in its chatbot form alongside the e-mail draft, and it will tell you whether it's good or not, in exactly the same way as Microsoft's copilot currently works in Outlook, or Gemini works in Gmail, that already exists. But at least it's comparable and it puts Apple in the game.