Apple Facing Hurdles in Adapting Baidu AI Models for China, The Information Reports

FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo
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Apple Facing Hurdles in Adapting Baidu AI Models for China, The Information Reports

FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo
FILE PHOTO: A logo is pictured outside the Apple Fifth Avenue store as Apple's Vision Pro headset is presented there, in Manhattan in New York City, US, February 2, 2024. REUTERS/Brendan McDermid/File Photo

f Apple and Baidu are working to add AI features to iPhones sold in China, but are facing hurdles that could hurt the tech giant's phone sales in the country, The Information reported on Wednesday.

The companies, which are adapting Baidu's large language models for iPhone users, are grappling with issues such as the LLMs' understanding of prompts and accuracy in responding to common scenarios, according to the report.

Apple and Baidu did not immediately respond to Reuters' requests for comment.

Sales of iPhone in China slipped 0.3%, while rival Huawei posted a 42% surge in sales in the third quarter, research firm IDC had said in October, as competition intensifies in the world's largest smartphone market.

Apple's long-awaited iPhone 16 launch in September had drawn scorn in China for its lack of artificial intelligence features.

Also, Apple's privacy policies do not allow collection of data from iPhone users who make AI-related queries, but Baidu wants to save and analyze this data, according to the report.

Baidu's most advanced model, Ernie 4.0, is being employed as the foundation for Apple's genAI services on the iPhone, Mac and iPad, The Information said, citing people familiar with the matter.

Siri will also use Baidu's AI models, according to the report.



Europe Wants to Lighten AI Compliance Burden for Startups

Words reading "Artificial intelligence AI", miniature of robot and toy hand are pictured in this illustration taken December 14, 2023. (Reuters)
Words reading "Artificial intelligence AI", miniature of robot and toy hand are pictured in this illustration taken December 14, 2023. (Reuters)
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Europe Wants to Lighten AI Compliance Burden for Startups

Words reading "Artificial intelligence AI", miniature of robot and toy hand are pictured in this illustration taken December 14, 2023. (Reuters)
Words reading "Artificial intelligence AI", miniature of robot and toy hand are pictured in this illustration taken December 14, 2023. (Reuters)

The European Commission plans to seek feedback to help lighten the regulatory burden for startups struggling to comply with European Union rules on the use of artificial intelligence, according to a Commission document seen by Reuters.

The move is the latest by the EU executive to water down legislation enacted in recent years following complaints by businesses across Europe about the volume and cost of red tape hampering their operations.

"There is an opportunity to minimize the potential compliance burden of AI Act, particularly for smaller innovators," said the document, the AI Continent Action Plan.

"The Commission aims to build on the first learnings from the current implementation phase and identify further measures that are needed to facilitate a smooth and simple application of the AI Act," it said.

EU tech chief Henna Virkkunen will present the measure on Wednesday.

The 27-country European Union signed off the landmark AI Act last year, a more comprehensive rulebook than the United States' light-touch voluntary compliance approach. China's AI regulations aim to maintain social stability and state control.

The AI Act imposes strict transparency obligations on high-risk AI systems, while the requirements for general-purpose AI models are lighter.