Apple (AAPL, Financial) and Baidu are collaborating to introduce AI features for iPhones in China next year. Both companies are making efforts to integrate Baidu's large language models to better serve iPhone users. However, they face challenges in accurately responding to user prompts and common scenarios.
Divergences have arisen over the use of iPhone user data for improving these models. Baidu aims to preserve and analyze AI-related queries from users to enhance its technology, while Apple's privacy policies restrict such data collection. These issues could impact Apple's strategy to boost its iPhone sales in the Chinese market if unresolved.
