Apple is reportedly in early-stage talks with Tencent and ByteDance, the owner of TikTok, to form a partnership on artificial intelligence (AI) features within China. These discussions come as Apple faces significant challenges in the Chinese market, particularly with the Chinese government’s strict approval process for generative AI services. For Apple to offer such services in China, it needs to collaborate with local companies that are better positioned to navigate regulatory hurdles.

While Apple has begun incorporating AI features, including ChatGPT, into its products, China’s restrictions mean that services like ChatGPT are unavailable in the country. This limitation poses a serious problem for Apple, especially as the company’s market share in the world’s largest smartphone market continues to decline. Without access to generative AI capabilities, Apple risks falling further behind in the highly competitive Chinese tech landscape.

Previously, Apple had discussions with Baidu, but reports suggest these talks hit roadblocks due to technical issues. One key challenge was a dispute over using iPhone user data to train AI models, a sensitive issue in the Chinese market where data privacy concerns are paramount. As Apple seeks a way to integrate AI into its ecosystem, aligning with Chinese giants like Tencent and ByteDance could be the key to overcoming regulatory barriers.

In China, companies that manage to secure approval for AI services are poised to benefit immensely. Any local company that partners with Apple would gain an edge in the rapidly growing AI sector. However, these negotiations are still in their infancy, and it remains uncertain whether the talks will lead to a concrete partnership.

Apple’s ability to introduce AI-powered features in China will play a pivotal role in its efforts to regain market share. As the company continues to focus on China as a major market, its next moves in the AI space will be closely watched by both industry observers and competitors.

GSMARENA/REUTERS