After a sluggish start in the artificial intelligence (AI) race, Apple Inc. is reportedly developing a wearable AI pin to make up for lost time.

The device, a disc-shaped assistant designed to be worn on clothing, represents the iPhone maker’s latest attempt to move beyond the smartphone and integrate ambient intelligence into the daily lives of its users.

Hardware is currently in the early stages of development, according to a report in The Information. The prototype is described as a sleek, circular device composed of aluminum and glass that resembles a slightly thicker version of Apple AirTag. The device, due as early as 2027, underscores Apple’s urgency to modernize its AI ecosystem.

While Apple has declined to comment on the project, the development of the pin is the strongest indication yet that the company is preparing for a post-iPhone era where the most powerful computer isn’t in your pocket but pinned to your lapel.

Early specifications suggest inclusion of a dual-camera system featuring standard and ultra-wide lenses for visual processing; a triple-microphone array for high-accuracy voice command recognition and ambient audio detection; physical controls in the form of a dedicated side button and a built-in loudspeaker for direct interaction; and wireless connectivity  capable of functioning as a standalone device or as a companion to future hardware such as smart glasses.

Apple could aim for an initial production run of 20 million units, marking significant confidence in the product’s market potential despite the checkered history of similar wearables.

Apple’s entry into the screenless AI market comes as competitors ramp up their own efforts. Meta Platforms Inc. has already integrated AI into its smart glasses, while Amazon.com Inc. and OpenAI are both exploring wearable form factors. Former Apple design chief Sir Jony Ive has reportedly teamed up with OpenAI to develop a rival device that could debut as early as this year.

For Apple, the pin is more than just a new gadget. It is a vehicle for a drastically overhauled Siri. After years of falling behind chatbots like ChatGPT and Google Gemini, Apple is reportedly revamping its virtual assistant to handle complex, fluid conversations rather than simple tasks. This overhaul may involve a hybrid approach, utilizing both Apple’s proprietary models and Google’s Gemini technology.

The prospect of an “always-listening” Apple device raises inevitable privacy concerns — a challenge for CEO Tim Cook, who has long marketed privacy as a core Apple value. The device will have to navigate the fine line between helpful persistence and invasive monitoring.

Furthermore, the AI pin category has yet to prove its commercial viability. Last year, startup Humane, which was founded by former Apple employees, faced critical panning and poor sales for its own $700 AI pin, eventually leading to the company being shopped for sale.

Apple is betting that its refined design, massive ecosystem, and the improved utility of a next-generation Siri will allow it to succeed where others have stumbled.

“If Apple enters this space with a wearable AI pin, it signals that ambient intelligence is moving from experimentation to platform strategy. The winners won’t be defined by novelty hardware, but by how well wearable AI integrates context, privacy, and trust across a broader ecosystem of devices people already live with,” said Mitch Ashley, vice president and practice lead, DevOps and AppDev, at The Futurum Group. “But then again, Apple has a habit of designing hardware that customers fall in love with (with a few exceptions)”

“Wearable AI is really about where intelligence lives, rather than the perfect form factor,” Ashley added. “Pins, glasses, earbuds, rings, badges, and other on-body devices all point to the same idea: AI that stays present, contextual, and ambient rather than locked behind a screen of a passcode. The real shift is from interacting with apps to interacting with intent, where AI listens, observes, and assists continuously without demanding attention.”