Apple’s newly announced AI features, branded as Apple Intelligence, won’t be coming to China anytime soon. This delay is mainly due to the country’s stringent regulations on artificial intelligence and the intense competition Apple faces from local brands.
At its annual Worldwide Developers’ Conference in June, Apple unveiled several AI-driven features such as text summarization, AI-powered image generation, and image editing, all powered by its proprietary generative AI software, Apple Intelligence. These features are set to be available in US English by late 2024.
However, in China, these features are expected to face significant delays. China has strict laws governing generative AI software, large language models (LLMs), and data privacy, which pose substantial hurdles for Apple’s rollout.
A report by CNBC, which included insights from various analysts, highlighted the challenges Apple will encounter in bringing its AI technology to the Chinese market. One major obstacle is the need for companies to obtain approval for the commercial use of their LLMs. Apple must secure authorization from Chinese officials for its on-device and cloud-based models.
Moreover, Apple might need to partner with a local company to manage the servers used for cloud-based AI tasks, similar to its existing arrangement for iCloud data in China. This necessity stems from China’s 2021 data privacy law, which Apple must comply with.
Censorship is another significant issue. For instance, OpenAI’s ChatGPT, integrated with Siri in iOS 18, is banned in China. Consequently, Apple may have to collaborate with a Chinese company that has already received approval for its LLM technology. Alibaba and Baidu are potential partners for Apple in this regard.
In late March, reports suggested that Apple was looking to partner with a local AI provider in China. Shortly after, it was indicated that Apple had chosen Baidu as its collaborator to introduce AI-related features to the Chinese market.
Beyond securing a local partner, Apple will also need to implement additional safeguards to prevent the generation of content that could be deemed anti-government. Apple’s current measures already block the generation of copyrighted, adult, and photo-realistic images within its apps, and similar controls will likely be needed in China.
Craig Federighi, Apple’s senior vice president of software engineering, emphasized the company’s desire to bring its best products to all customers, acknowledging that some regions have regulatory challenges.
Apple faces robust competition in China, mainly from domestic brands like Huawei, which are popular. Apple’s market share in China dropped from 20% to 15% in the first quarter of 2024 compared to the same period the previous year, with Huawei being a significant competitor in the premium smartphone segment.
Apple’s strategy typically involves extensive time, resources, and marketing investment to ensure its products are competitive and well-received. This careful approach has led Apple to delay the launch of its in-house LLMs until competitors like OpenAI’s ChatGPT and Google’s Gemini have already been established. The same cautious strategy will likely apply to Apple’s AI rollout in China, acknowledging that the process will be challenging and time-consuming.
While Apple Intelligence promises advanced AI features for users in the U.S. and other regions, Chinese customers must wait due to regulatory and competitive hurdles. Apple’s journey to introduce its AI technology in China will be a complex and prolonged effort, reflecting the broader challenges and dynamics of operating in the Chinese tech market.
