The news: Apple will reportedly launch an AI-enabled web search tool powered by Google’s Gemini, potentially accelerating long-awaited software improvements and helping Apple enter the AI search race, per Bloomberg. The “answer engine” would be integrated with Siri and could help Apple compete with OpenAI and Perplexity. The feature, internally called World Knowledge Answers, will aggregate information from across the web into AI Overviews-esque summaries. It may eventually be added to Safari and Spotlight. Our take: Apple’s pivot toward external AI partnerships highlights how unready it is to compete head-to-head in foundational AI or search. While a Gemini integration could improve Siri and add powerful search capabilities, it could threaten Apple’s core advantage: total control over the user experience.

The news: Apple Intelligence could integrate OpenAI’s GPT-5, its latest model that combines traditional ChatGPT capabilities with deepo3-series reasoning, as early as next month, per 9to5Mac. Updates for a more personalized and intelligent Siri, originally expected in the iOS 18.4 update, were delayed in March until sometime “in the coming year.” GPT-5 could accelerate that timeline and give Apple a more robust foundation for a truly conversational, autonomous assistant Our take: Marketers and publishers should prepare for reduced visibility through traditional search if assistants like Siri can effectively answer user queries directly. Focus on generative engine optimization (GEO) for conversational AI discovery—think FAQs on websites and succinct answers that large language models (LLM) can easily surface.

The insights: Generation X leads in consumer spending, and tech industry marketers may be missing out on a key opportunity, especially this holiday season. Gen Xers worldwide will spend $15.2 trillion in 2025—more than any other generation—per NielsenIQ’s The X Factor report. 25% of UK Gen Xers plan to spend more than £500 ($639) on Christmas gifts this year, per Azerion, while only 1% of Gen Zers say they will spend that much. Our take: This is marketers’ cue to lean into smarter personalization, digital experiences, and loyalty programs that appeal to Gen X’s tech-savvy, open-minded style, and their outsized influence on household spending. Dedicated strategies to target Gen X now will drive growth while spending power is at its peak.

The news: Apple is in talks with OpenAI and Anthropic to power a revamped version of Siri, per Bloomberg. This follows internal delays and setbacks in launching the AI-enhanced Siri that was announced at WWDC in June 2024. Advertising repercussions: Advertisers and brands won’t just be contending with Apple’s ad systems and algorithms—they also need to consider third-party vendors’ ecosystems and how those preference ad placements. Our take: Apple settling for outside AI is a turning point for walled gardens. For advertisers, it’s both a risk—due to reduced predictability—and an opportunity to innovate within new conversational interfaces.

Our analysts took a look at the first half of this eventful year and provided their own very specific—albeit unlikely—predictions at what could happen in the second half of the year and beyond.

The news: Smartphone makers and developers may be misplacing their focus on on-device AI as consumer interest nose-dives from already low levels. Only 3% of smartphone owners are willing to pay extra for AI features, per CNET’s 2025 Smartphone Innovation Survey, down from 6% in September. Our take: Enterprise customers may be a better bet for on-device AI adoption considering public consumers’ disinterest and privacy concerns. To boost use among consumers, smartphone makers could focus on easy-to-use features that are accessible to those new to AI and roll out AI upgrades incrementally rather than all at once to avoid AI overload.

The news: Apple’s highly anticipated AI enhancements, particularly for Siri, remain unfinished. During WWDC 2025, SVP Craig Federighi confirmed delays, stating Apple needs “more time to reach a high-quality bar.” No major voice assistant upgrades were announced. Apple’s most relevant AI move wasn’t a product—it was a warning: Ahead of its event, Apple published a research paper arguing that top models like OpenAI’s GPT-4o, Anthropic’s Claude 3.7, and Google’s Gemini don’t truly “reason.” Instead, they create an “illusion of thinking.” Our take: Apple is hedging its AI bets by being cautious with core offerings like Siri while quietly enabling developers with on-device LLMs and privacy-first tools. Instead of overpromising, Apple is pointing out potential problems with the latest AI models while exercising restraint.

A 25% iPhone tariff risks upending Apple’s manufacturing strategy and slamming profits just as it dives deeper into AI.

Google’s AI is expanding fast and meeting demand, but users could be wary about data collection in their homes and vehicles.

Control of the world’s top browser would give OpenAI data, default status, and an AI-native edge to rival Google in the search war.

AI agents are here, but they’ve had little effect on the consumer journey so far. That should change by the end of 2028.

With promised features missing, the rollout echoes a broader trend of overpromising and underdelivering in AI.

Apple faces lawsuit over false advertising for delayed iPhone 16 features: The case echoes concerns over the impact that deceptive advertising can have on brands.

Echo users can no longer block voice data sharing as Amazon quietly makes off-device processing mandatory to train Alexa+.

Form factor is Gemini’s secret weapon: With Gemini landing across every Google touchpoint, it’s poised to dominate as Apple fumbles Siri and Amazon slaps a fee on Alexa+.

Apple’s delay underscores how hard on-device AI is to get right. Meanwhile, Alexa+ and Gemini also stumble, proving voice assistants aren’t an easy win.

The improved Alexa finally debuts with better conversation skills and smart home features. Can Amazon convince users to pay when smartphones offer similar features for free?

While iPhone and wearables sales slipped, Apple’s services revenues grew 13% YoY to $26.3 billion. Apple Intelligence hasn’t paid off yet, but monetizing Siri could give it a boost.

Amazon faces technical and factual challenges as it transforms Alexa into an advanced AI agent, delaying progress and risking its market relevance.

Voice assistants fumble the AI revolution: Despite genAI advancements, Big Tech’s assistants face stalled growth and disinterest from older users—Gen Z and parents of Gen Alpha might be their saving grace.