Apple is reportedly developing new Apple Watch models with built-in cameras, aiming to introduce advanced AI capabilities like Visual Intelligence by 2027, according to Bloomberg's Apple analyst Mark Gurman. In his Power On newsletter, Gurman revealed that Apple is exploring ways to integrate cameras into both the standard Apple Watch Series and the premium Apple Watch Ultra, though their placement will differ.

For the standard Series models, the camera is expected to be embedded within the display, while the Ultra model may feature a camera on the right side, near the Digital Crown. These cameras are not intended for FaceTime or video calls but will instead enable Visual Intelligence—a feature that allows users to gather real-time information about their surroundings. For example, pointing the watch at a restaurant could display its hours, ratings, or menu details.  

Visual Intelligence, which debuted on the iPhone 16 and is available on iPhone 15 Pro models starting with iOS 18.4, relies on AI models to analyse visual data. Gurman noted that Apple plans to transition from third-party AI models to its own in-house models by 2027, coinciding with the release of the camera-equipped Apple Watch and AirPods.  

The addition of cameras to Apple Watch and AirPods is part of Apple's broader strategy to compete in the AI wearables market. Gurman suggested that these features would enhance the devices' ability to "see the outside world" and deliver contextually relevant information, such as identifying objects or providing location-based details.  

The development of these AI features is reportedly being overseen by Mike Rockwell, who recently took charge of Apple's Siri upgrades. Rockwell, previously responsible for the Vision Pro headset, is expected to bring his expertise in visionOS to the project. This move aligns with Apple's long-term vision for AI-powered wearables, including potential augmented reality (AR) glasses, which remain in early development.  

While the integration of cameras and AI into Apple Watch and AirPods could redefine smart wearables, challenges remain. Ensuring user privacy, optimising battery life, and refining AI accuracy will be critical for success. Additionally, Apple faces growing competition from other tech giants investing heavily in AI-driven devices.  

If Gurman's report holds true, the next generation of Apple Watch and AirPods could mark a significant leap in wearable technology, blending advanced AI with everyday convenience. However, with a projected 2027 release, Apple has time to refine its approach and address potential hurdles.