EXCLUSIVE: Apple’s Craig Federighi Talks AI and Privacy

As AI becomes more integrated into our devices, the big question is: are we sacrificing privacy for cool new features? With Apple’s upcoming AI features for iPhone, people using AI should be asking—who’s really accessing your data?

Apple’s answer as they move to introduce their own AI product is a mix of advanced tech to create strict privacy. 

Their new “Apple Intelligence” promises to process data directly on your device when possible, and when more power is needed, it turns to a “Private Cloud Compute.” The goal: keep your data private, whether it’s on your phone or in the cloud.

I had the chance to speak exclusively with Apple’s Senior VP of Software Engineering, Craig Federighi, about how Apple is balancing AI’s capabilities with user privacy.  He says there are “significant concerns among many people who are new to AI about what it means for their privacy. And I think many people have things that could be really useful that they’d like to do with AI that honestly today they’re kind of afraid to do.”

How Apple’s Approach Sets a New Standard

Apple’s privacy-first approach isn’t just talk—it’s built into the way their AI works. Federighi pointed out that Apple doesn’t have “privileged access” to your data, even in the cloud. Many cloud services rely on super users—trusted employees with back-end access to systems. But Apple has eliminated that. There’s no single person who even has the key to unlock the “back end” and access any data, moreover, there’s no trace of your request or data once your AI “transaction” is complete.

This is huge because AI needs personal data—your emails, texts, calendar, etc.—to work its magic. So, it’s natural to worry about where that data is going. Federighi acknowledged this, telling me, people “paste that personal content into a webpage field and wonder what’s happening with this data.” Apple’s answer? They’ve designed their AI so users don’t have to worry about privacy.

Apple’s known for privacy as much as it is for the iPhone. Their new AI features are built with the same philosophy, ensuring you can use AI without giving up control of your data, ensuring as Federighi says that “As we were releasing Apple intelligence, we were doing this in an Apple way, meeting the standards that they expect from us and everything else they do, and that they can feel comfortable taking advantage of the power of this intelligence without compromising their privacy.” Federighi said. 

Cloud Power with Privacy in Mind

Most of Apple’s AI processing will happen on your device. But sometimes, more power is needed, so Apple turns to their Private Cloud Compute. Federighi explained that this isn’t just about tapping into cloud power; it’s about maintaining Apple’s high privacy standards even when the cloud is involved. 

“When it comes to some of these generative (AI) models, sometimes you want to access something that’s even more powerful than what we can run on device today. So for that we need to draw on the cloud, but as we approach the cloud, we did not want to give up any of the privacy protections that our users have come to understand.”

Apple’s cloud infrastructure is designed for anonymity. There’s no record of your requests, no trace left behind, and no Apple employee has the ability to access your data. In short, your data stays yours.

Who’s Making Sure Apple Follows Through?

Apple’s claims aren’t just for show. They’ve invited independent security researchers to test their systems to verify that their privacy promises hold up. Federighi compared it to people who read the fine print in legal documents, making sure companies stick to their word.

Federighi says “You know, not everyone reads legalese in company disclosures, but there’s some people out there who, thankfully read them very closely and hold up companies who are not doing the right thing.”

Federighi goes on to say “And this is also true in security. It’s been true for us for a long time that our customers understand that they can rely on Apple to protect their privacy in ways that are really unique in the industry. And this allows us to keep that same bar and extend it into the cloud.”

Apple’s goal is simple: keep privacy seamless and invisible. Whether AI processing happens on your device or in the cloud, you’ll never know the difference, and you shouldn’t have to. 

“It is invisible and seamless, and we think that was the bar we held ourselves to in the privacy promise of private cloud compute, that it could be a service that kept the same bar of privacy as your phone, and so that it could be used in a way that wasn’t changing the privacy considerations, whether it was processing occurring on device or in privacy in private cloud compute” Federighi explained. 

The Gold Standard for AI?

Apple’s “Apple Intelligence” will be available later this year on iPhone 15 Pro models and the new iPhone 16. Will people trust it? And more importantly, will other tech companies follow Apple’s lead in prioritising privacy with AI?

Apple may have set the gold standard for AI in the cloud. Now, the question is whether the rest of the industry can step up.

Trevor Long travelled to the USA as a guest of Apple Australia