Is Apple falling behind in AI? Fans raise questions after iPhone 17 launch event

Apple launched the iPhone 17 series with faster chips and stronger hardware, but the spotlight on AI dimmed this year, sparking questions about its strategy.

Apple’s September keynote this year looked noticeably different. The company unveiled the iPhone 17 series alongside updates to AirPods and the Apple Watch, but the buzzword that dominated last year’s announcements, AI, hardly made an appearance.

Tim Cook called It the “Biggest Leap Ever” but hardly talked about AI at the Apple iPhone 17 launch event

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The 75-minute presentation leaned heavily on hardware gains rather than flashy demonstrations of “Apple Intelligence.” CEO Tim Cook called it the “biggest leap ever for iPhone,” but when it came to artificial intelligence, the company was measured, almost cautious.

AI in the background, not the headline

Instead of showcasing new consumer-facing tools, Apple spoke about how AI quietly powers its devices in the background. Executives highlighted the neural engine inside the iPhone’s chip, designed to handle heavy AI workloads and deliver “MacBook Pro-level compute” on a smartphone. They also noted improvements in gaming performance and battery life, indirectly tied to AI-driven optimisation.

For AirPods, AI was framed around practical functions like real-time translation and activity tracking. Apple said its on-device models draw from over 50 million hours of study data to deliver accurate calorie and heart rate monitoring. The Apple Watch received a similar treatment: AI algorithms are being used to study blood pressure patterns over time, with Apple aiming to notify more than a million users of potential hypertension once FDA clearance is secured.

This restrained messaging contrasts sharply with rivals. Google’s Pixel 10 launch last month put its Gemini AI front and centre, while Samsung used its January event to push AI-powered assistance tools. Apple, meanwhile, seems to be positioning AI as a silent partner rather than the star attraction.

The approach also reflects a bigger challenge: Apple is struggling to keep pace in the high-stakes AI race. The company has lost several senior researchers this year, including members of its foundation models team, to competitors like Meta, OpenAI, and Anthropic. Those rivals are pouring billions into AI development — OpenAI is valued at $300 billion and projects massive spend through the decade, while Meta continues to hire aggressively in the space.

For Apple, focusing on hardware may buy time, but the industry is watching to see how long it can sidestep the AI arms race. With user expectations rising and rivals pushing boundaries, Apple’s next moves in artificial intelligence will be critical in shaping its future relevance.