Apple has always been innovating with privacy inherent to their principles and products. Their strength has revolved around managing the user experience in devices they naturally own—and that makes them a strong ‘product’ in the market, and in our minds. Meanwhile, large technology companies like Google, Microsoft and OpenAI have drawn headlines in recent months for generative AI breakthroughs, but behind the scenes, Apple has secretly studied AI technology, their own, particularly around search capabilities’. In a recent report from Bloomberg, News reports Apple is working hard to build technology products related to search capabilities that are driven by AI.

Spotlight on ‘Pegasus’: Apple’s Next AI Search Engine

Internally, at Apple, its AI search initiative is referred to as “Pegasus”, an AI search project named after a horse. Pegasus project is to be next generation AI search that will provide more contextual and relevant results across Apple products. Although Pegasus has not been formally launched and touted by Apple as a product, we see it in testing across various companies Apple apps in the App Store and Apple TV. In other words, older algorithms in the app had been replaced to provide more dynamic search results to the user.

This represents a significant shift from Apple’s previous approach, which was largely reliant on traditional keyword-based search and some limited natural language processing. With Pegasus, Apple has put out the goal of achieving or exceeding the AI search capabilities of Google and Microsoft, but with an increased emphasis on privacy.

Why AI Search Matters for Apple

Apple’s long-standing search partnership with Google — estimated at around $18 billion a year — brings into question whether the company might eventually reduce its reliance on Google for search on Safari and within its ecosystem. Developing an in-house AI search engine could be Apple’s attempt to future-proof its ecosystem, while keeping user data safe and on-device.

Apple’s Sr. VP John Giannandrea, who previously led Google Search and AI, is said to be spearheading the AI search efforts, which have considerable value in keeping Apple competitive with its tools. 

AI Tools Already in Use Across Apple Devices

While Apple hasn’t made major announcements, AI is already being used in many of the company’s products:

• There is a major upgrade to Siri that utilizes Apple’s own large language models (LLMs); and Transit directions in Maps uses AI LLMs for timely responses, 

• The majority of Deep Fusion in Photos uses the localized processing capabilities from a sizeable AI data set.

• Apple’s Spotlight Search will be advanced with smarter suggestions.

• Xcode, which is also known as “Apple’s development platform,” will gain AI-driven code-generation tools similar to GitHub Copilot.

• On-device intelligence enables capabilities such as photo identification, voicemail transcription, and text prediction.

Apple is taking a different approach when it comes to AI by focusing on doing AI on-device rather than in the cloud. This is consistent with its privacy-first approach and allows users to interact with Apple’s devices and applications quicker and in a more efficient manner without Apple having to give up any of its user data. 

Tim Cook’s Vision for AI at Apple

Apple’s CEO Tim Cook has reportedly been gathering internal teams behind the AI initiative saying that it is one of the ‘areas of focus’ that is most important for Apple moving forward. Although Apple has refused to label its work as a “ChatGPT competitor” or an “AI assistant”, it is clear that Apple is investing a tremendous amount of research and development into generative AI, even redefining the expectations for search.

Cook indicated during recent earnings calls that Apple will “talk more about generative AI features ” later in 2024, likely during an upcoming product launch or software update.

Conclusion

Apple’s AI search tools may not be grabbing the headlines like ChatGPT or Gemini, but they clearly signal Apple is positioning themselves strategically in the AI industry—on their own terms. With Project Pegasus and smarter on-device experiences, Apple is gearing up for a world of AI that is embedded into every Apple experience deeply, securely, and silently. Pay attention to the next rounds of iOS updates and product launches—AI may be Apple’s next leap.