Apple (NASDAQ:AAPL) is preparing to introduce AI-powered features in China by May, but regulatory hurdles remain, according to Bloomberg. To comply with China's strict AI rules, Apple is partnering with Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU).

Alibaba will handle on-device AI modifications to meet government content restrictions, while Baidu will manage additional features like Visual Intelligence on the upcoming iPhone 16. Apple and Alibaba have already submitted their AI system for approval.

While Apple's AI models will work similarly to those in the U.S., Alibaba's software will filter content the government deems inappropriate. If issues arise, Apple may need to tweak its models or temporarily disable features on outdated AI versions.

These AI capabilities will be exclusive to iPhones sold in China, devices bought elsewhere won't connect to the local system. For cloud-based AI processing, Apple might need a local partner, similar to its iCloud deal with state-affiliated GCBD.