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Apple faces the most disruptive threat it has seen in the iPhone era

The company has strengths in AI but ground to make up as rivals Google and Microsoft move fast

When Tim Cook told Wall Street a month ago that Apple would unveil new artificial intelligence features this year, he broke with the company’s normal practice of not talking about a new technology until it has something close to shipping.

This week, meanwhile, brought news that many of the engineers from Apple’s car project will be moved across to work on generative AI, following the company’s abandonment of a decade-long autonomous vehicle effort.

In the world of Apple, where such moves normally stay firmly out of sight, this counts as a serious convulsion. Generative AI is sweeping through the tech world and Cook, as chief executive, needs to rally the troops. The company has some clear advantages in the coming battle — yet, starting late, it could also be facing the most disruptive threat it has seen in the iPhone era.

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