Apple Intelligence launch in China may face these three ‘challenges’

Apple has announced Apple Intelligence, a suite of AI features that will run on iPhones, iPads and Mac PCs. The AI features will be available later this year to users globally, including China – one the most critical markets for the company. However, the company’s big AI push may face some challenges in China as regulators have in place strict rules around the technology amid tough competition.
The three challenges that the company may face in China are (via CNBC):


China’s AI market is tightly regulated and all companies launching AI models must have approval from the regulators for the commercial use of LLMs.The country has also made it mandatory for Generative AI providers to take down “illegal” content.
Since some of the features of Apple Intelligence are developed by the company itself, Apple will likely need to get its AI model approved by authorities under Chinese rules.

China has also banned OpenAI’s ChatGPT. Some of Apple’s voice assistant Siri’s capabilities are dependent on ChatGPT. This could mean that Apple may have to find a local AI company that provides the same level of capabilities as ChatGPT. Baidu and Alibaba are among China’s technology giants that have their own LLMs and voice assistants.

Apple's AI launch highlighted a focus on user privacy. Their new system, Private Cloud Compute, processes user data on Apple-owned servers, with the company claiming the data itself is not stored.
However, in China, Apple's iCloud data is stored on servers located locally and operated by a third party. This may raise concerns about whether Apple can maintain complete control over its AI computing servers in the country.
This means that Apple must have a similar partnership for its AI servers in the region to keep user data private.