Apple Inc. (NASDAQ:AAPL) has committed to updating its AI feature following a complaint from the BBC.
What Happened: The tech giant acknowledged on Monday that its AI-generated news summaries on iPhones have been inaccurate, reported BBC.
The issue came to light last month after the BBC reported that an AI-generated summary falsely claimed that Luigi Mangione, accused of killing UnitedHealthcare CEO Brian Thompson, had shot himself.
See Also: Apple Supplier Foxconn Posts Record Revenue, Rides High On AI Server Demand And Nvidia Partnership
On Friday, Apple’s AI once again inaccurately summarized BBC app notifications, stating that Luke Littler had won the PDC World Darts Championship before it began and that Rafael Nadal had come out as gay.
This is the first time Apple has formally addressed the BBC’s concerns, the report noted.
Apple did not immediately respond to Benzinga’s request for comments.
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Why It Matters: This comes at a time when the company is navigating a significant shift towards AI and virtual reality.
In November 2024, Apple warned investors about potential profit risks associated with these emerging technologies, which may not match the revenue and profit margins of its flagship iPhone line.
Despite these challenges, analysts like Dan Ives from Wedbush remain optimistic about Apple’s future. In a December analysis, Ives predicted a “golden era of growth” for Apple, driven by a multi-year AI-driven iPhone upgrade cycle.
Price Action: Apple’s stock rose 0.67% on Monday, closing at $245, as per Benzinga Pro data. Latest analyst reports from Bernstein, B of A Securities, and Wedbush have set an average price target of $280.33, suggesting a potential upside of 14.43%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
