Apple Intelligence is having a problem when it comes to implementation in China. The Cupertino giant sees this as a huge issue as regulatory hurdles might hamper its release in this market.
The process to obtain approval for AI products from foreign companies in the country will be "difficult and long," according to a high-ranking official from the Cyberspace Administration of China (CAC). In fact, working with local AI companies will make it a "simple and straightforward" process.
Apple's Generative AI Strategy in China
China has a strict law stating that any generative AI product launched locally should first receive approval from the local government. According to reports from the Financial Times, Apple has been considering its own LLMs to be launched in China but has also sought collaboration with other Chinese tech companies to help navigate complex regulatory requirements.
The Chinese government, which has effectively censored Western platforms like Google, Facebook, and Wikipedia, is also keen on outlawing access to the web for those other forms of generative AI that mimic web searches.
Compelling foreign companies to use vetted, locally developed AI models helps China ensure strict oversight of information dissemination.
Apple Will Struggle Not Just Under Economic But Political Pressure
The challenges facing Apple in China are not limited to the AI area. Recently, the government dissuaded consumers from purchasing iPhones by citing national loyalty and banning them from use by government officials. These actions made Apple face a significant drop in market performance within the country.
However, China is still a vital part of Apple's global business: it accounts for 17% of its sales and houses its critical manufacturing facilities. According to an acknowledgment by Apple's CEO, Tim Cook, Apple absolutely cannot function without using suppliers from China.
What Analyst Predicts About Apple Intelligence Rollout in China
According to JP Morgan analysts, Apple will likely take a pragmatic view of China's demands and may delay the launch of Apple Intelligence in the country into late 2025. Reports are not welcomed by the company, but Apple is likely to find a middle ground to continue its hold on the Chinese market.
As for 9to5Mac, experts believe that the iPhone maker will have little choice but to cooperate with Chinese authorities in return for approval. Stakes are high—revenue-wise, besides the likelihood of dependence on Chinese infrastructure for manufacturing.
Beijing's efforts to wrest control of the generative AI tools are part of its broader policy of information flow regulation.
If Apple wants to bring the AI platform closer to China, it might be forced to bar US news from launching on the App Store aside from removing VPN apps.
In imposing partnership agreements on local AI developers, the government solidifies its hold on technological innovations while forcing foreign operators to fit the narrow parameters.
Earlier this month, an analyst revealed that Apple Intelligence is "at least two years behind." The features of this technology are the ones to blame.
More importantly, Apple needs to take a slow route for its AI plans to flourish. The gradual release of new features to the public could help the users become more familiar with how they work.
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