TLDR
- Apple released iOS 27 with a redesigned Siri that works like a chatbot, similar to ChatGPT and Claude.
- Newer AI assistants like Instinct and Meta’s Muse can complete real-world tasks online, not just answer questions.
- Instinct, built by an 11-person startup, is already valued at $2.5 billion and growing fast in Silicon Valley.
- Meta’s Muse was downloaded nearly 600,000 times in its first five days after launching last week.
- Apple’s privacy-first approach may be limiting how capable its AI can become, according to former Apple AI staff.
Apple’s AAPL stock edged up 0.63% as the company released iOS 27 on Monday, featuring a redesigned Siri that can hold conversations, draft emails, search photos and messages, and handle complex queries. It brings Siri in line with chatbots like ChatGPT and Claude, but the AI market has already moved on.
While Apple was building a smarter chatbot, a new category of AI tools emerged that can actually do things for you. Book a flight. Cancel an appointment. Sign up for a website. File a complaint. These are called AI agents, and they are what consumers and the industry are now focused on.
New CEO John Ternus kicked off Apple’s product event last Wednesday, calling the iPhone an “intelligent personal hub” and the best AI device on the market. It was his first public appearance as Apple’s leader, and he leaned hard into the AI angle.
The redesigned Siri works well within Apple’s own apps and some third-party apps that have opened up access. But major apps like Google have not, meaning Siri still cannot work smoothly with Gmail.
The Competition Is Moving Fast
Instinct is one of the AI agents now drawing attention away from Siri. Built by an 11-person startup and already valued at $2.5 billion, it launched over the summer and is invitation-only. It runs in the cloud, connects to Gmail, and users chat with it through iMessage or WhatsApp.
Instinct can spot a double-booked trip and fix it. It can find restaurant options without a Google Maps deep-dive. It can register your kid for a soccer league, read the schedule, and add every game to your calendar. It does all of this by running a virtual web browser in the cloud.
Meta’s Muse is also in the mix. Launched last week, it hit nearly 600,000 downloads in its first five days, putting it close to ChatGPT’s early numbers. Meta has the consumer scale to push Muse hard, and that puts it in direct competition with Apple’s ecosystem.
Apple’s Privacy Bet
Apple’s response to all of this is privacy. Ternus said Apple keeps data private while “others see data as something to collect and store.” Tools like Instinct and Muse do require access to your email and accounts, which raises real concerns. Meta has acknowledged Muse could delete emails. Unauthorized charges are another fear.
But former Apple AI employees told the Wall Street Journal that the company’s privacy stance can slow product development and limit what AI experiences Apple can actually deliver.
The risk is straightforward. If third-party AI agents outperform Siri by a wide margin, users may stop seeing the point of paying a premium for the iPhone. The value of Apple’s ecosystem depends on everything working better together. That story gets harder to tell if the best AI assistant is not made by Apple.
Muse launched last week and reached nearly 600,000 downloads in its first five days, per SensorTower estimates.
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