Apple released iOS 27 on Monday with a redesigned Siri that can hold conversations, draft emails, search photos and messages, and handle complex queries. The update makes Siri more comparable to chatbots such as ChatGPT and Claude, but the broader artificial-intelligence market has already shifted toward tools that can perform tasks on users’ behalf.

Apple’s AAPL stock edged up 0.63% as the company released the update. The company’s new chief executive, John Ternus, introduced Apple’s product event last Wednesday by calling the iPhone an “intelligent personal hub” and the best AI device on the market. It was Ternus’ first public appearance as Apple’s leader, and he placed strong emphasis on artificial intelligence.

Siri effectively within Apple’s own applications and with some third-party apps that have provided access. However, major applications such as those from Google have not done so, meaning Siri still cannot work smoothly with Gmail. That gap stands out because email is precisely where much of the new agent activity happens: Instinct’s ability to catch a double-booked trip, for example, runs through its Gmail connection.

The AI Agent Race

While Apple was developing a more capable chatbot, a new class of AI products emerged that can complete real-world tasks online. These AI agents can book flights, cancel appointments, sign users up for websites, and file complaints, rather than simply answering questions. They are increasingly drawing attention from both consumers and the technology industry.

Instinct is among the AI agents competing for that attention. Built by an 11-person startup, the company is already valued at $2.5 billion and has been growing quickly in Silicon Valley. Instinct launched over the summer and remains invitation-only. It operates in the cloud, connects to Gmail, and allows users to communicate through iMessage or WhatsApp.

The service can identify and fix a double-booked trip, find restaurants without requiring an extensive search through Google Maps, and register a child for a soccer league. It can also read the league schedule and add each game to a user’s calendar. Instinct performs these tasks by operating a virtual web browser in the cloud — an architecture that keeps the working agent outside the phone’s default assistant entirely.

Meta’s Muse is another competitor. Launched last week, it was downloaded nearly 600,000 times during its first five days, according to estimates from SensorTower, an app-analytics firm, bringing it close to ChatGPT’s early download numbers. Meta has the consumer reach to distribute Muse widely, placing the service in direct competition with Apple’s ecosystem.

Apple’s Privacy Position

Apple’s response has centered on privacy. Ternus said Apple keeps data private, while “others see data as something to collect and store.” Services such as Instinct and Muse require access to users’ email and other accounts, creating potential risks. Meta has acknowledged that Muse could delete emails, while unauthorized charges are another concern.

Former Apple AI employees told the Wall Street Journal that Apple’s privacy position can slow product development and restrict the AI experiences the company is able to provide.

The challenge for Apple is that third-party AI agents could offer capabilities far beyond Siri. If that happens, users may question the value of paying a premium for an iPhone. Apple’s ecosystem depends on its products and services working better together, but that proposition becomes more difficult to maintain if the most capable AI assistant is developed outside the company. How the gap develops will show up in a few concrete markers: whether Google extends Siri the app access it has so far withheld, whether Instinct moves past its invitation-only phase, and whether Muse sustains a download pace that early estimates put near ChatGPT’s debut numbers.