Rumor: Apple is working on an AI-powered search engine

According to Bloomberg journalist and Apple insider Mark Gurman, Apple is working on an AI-powered ‘answer machine’ to compete with competitors such as OpenAI’s ChatGPT.
Gurman, who has a good track record when it comes to Apple rumors, says that Apple is in the process of setting up its own AI search team that has been dubbed Answers, Knowledge, and Information, or AKI for short.
The team is being led by Robby Walker, who previously led the Siri division. His team is currently exploring options for utilizing AI to develop a search engine or “answer machine” similar to those used by other chatbots. Apple’s AI-powered search engine should be able to search the internet and provide usable answers to offer a “ChatGPT-like search experience.”
According to Gurman’s report, the AKI team is developing both a standalone app and search engine capabilities that could be integrated into Siri or Safari.
Apple has been struggling with the rise of AI and large language models (LLMs) for some time. Nearly all of Apple’s competitors are working on this, but Apple lacks the necessary in-house expertise and wants to use AI in a way that doesn't compromise user privacy.
However, Apple doesn’t want to train LLMs on user data, but lacks a viable alternative. The current workaround, which performs certain local calculations and then forwards them to ChatGPT, is far from ideal.
Another factor why Apple is working on an AI-powered search engine is to help offset Apple’s multi-billion-dollar search deal with Google. Google annually pays a significant amount to be the default search engine on Apple devices. However, this practice is currently under investigation by regulators. Analysts anticipate that certain restrictions will be imposed on this agreement in the future.
In addition, Eddy Cue, Senior Vice President of Services at Apple, noticed a decline in search engine queries because more and more people are increasingly relying on AI search results. Apple intends to be prepared for this by offering an alternative of its own.
Last week, Apple CEO Tim Cook held a meeting discussing the prospects for AI and he was optimistic about the future of AI. “Apple must do this. Apple will do this. This is sort of ours to grab. We will make the investment to do it,” Cook said during the conference.
Furthermore, Cook previously said that the company is open to making acquisitions to accelerate its roadmap.