Can Apple’s next CEO John Ternus fix the company’s AI strategy?

Apple is undergoing a major leadership overhaul as the current CEO Tim Cook is ready to hand over his responsibilities after 15 years.

Tim Cook-15-year tenure as Apple CEO is going to end on September 1, 2026 and the position will be replaced by Apple’s longtime hardware boss John Ternus, announced by the company on Monday.

With a new position comes new responsibilities. In the age of AI where every tech giant, including Google, OpenAI, and Microsoft is pivoting towards artificial intelligence by committing hundreds of billions of dollars a year to fund new data centers and pricey AI chips. On the contrary, Apple lags behind in the AI landscape.

Hence the most pressing challenge for John Ternus is to integrate AI in the company’s mission. During the tenure of Tim Cook, Apple’s AI strategy has involved slashing hefty capital expenditures.

The company also hesitated to develop a foundational AI model. Instead, it relied on Gemini and Sir features to upgrade their products.

Similarly, Apple’s 2024 launch of Apple Intelligence introduced a suite of features, including image generation, text rewriting, n

notification summaries, and a partnership with OpenAI, aimed at modernizing the iOS experience.

In January, Bloomberg also reported that the company is planning to speed up the development of three upcoming AI wearables powered by Siri, such as a pendant, smart glasses and AirPods with cameras.

But the users are increasingly turning to third-party developers to get their AI fix on the platform.

“By choosing a hardware leader in John Ternus, Apple may be signalling that it still believes the future of AI will run through tightly integrated devices, not just software,” said Timothy Hubbard, assistant professor of management at the University of Notre Dame.

Apple’s AI gap: The first big test for John Ternus

John Ternus, 50, will face the challenge of integrating AI into Apple’s lucrative services as Apple is already collecting a commission when users subscribe to premium versions of ChatGPT or Claude through the App store.

Secondly, Tetanus will think about the company’s approach whether the company wants to pursue existing privacy-first approach or it will adopt AI-driven personalization.

Forrester analyst Dipanjan Chatterjee said that in the coming years, “the seas will be turbulent for Apple because there’s been so much change in how consumers interact with technology, particularly with generative AI.”