Apple Faces Challenges in Adapting Baidu AI for Chinese iPhones

Privacy concerns and technical hurdles complicate Apple's efforts to integrate Baidu's Ernie 4.0 model for AI features in China.

Apple and Baidu are collaborating to adapt Baidu's Ernie 4.0 AI model for iPhone users in China, aiming for a 2025 rollout of Apple Intelligence in the region.
Technical issues with the AI's ability to understand prompts and respond accurately are delaying progress, according to reports from sources familiar with the project.
Apple's strict privacy policies clash with Baidu's desire to collect and analyze user data to improve the AI model, creating a significant point of contention.
The partnership reflects Apple's effort to compete in China's highly competitive smartphone market, where iPhone sales have declined as local brands like Huawei gain traction with advanced AI features.
Apple is paying Baidu to license and adapt the Ernie 4.0 model, marking a departure from its no-cost collaboration with OpenAI in other markets.