According to a report by Bloomberg's Mark Gurman, Apple is working on adding cameras to the Apple Watch, which will enable AI features like Visual Intelligence, by 2027. This development is expected to revolutionize the wearables market and further blur the lines between smartwatches and smartphones.

The cameras will be integrated into the display of the standard Apple Watch Series, while the Apple Watch Ultra will feature it on the side, next to the digital crown and button. With these cameras, the Apple Watch will be able to "see the outside world and use AI to deliver relevant information," Gurman wrote in his Power On Newsletter.

This development is part of Apple's broader strategy to integrate AI features into its devices. The Visual Intelligence feature, which debuted on the iPhone 16, uses the phone's camera to perform tasks like adding details from an event flyer to your calendar or looking up information about a restaurant. Apple hopes to power this feature with its own in-house AI models by 2027, when the new Apple Watches and AirPods are expected to be released.

The leadership of Mike Rockwell, who is now in charge of getting the delayed Siri LLM upgrade on track, will play a crucial role in the development of Visual Intelligence and other AI features for Apple's wearables. Rockwell was previously in charge of the Vision Pro and is expected to continue working on visionOS, the software that will power Apple's AR glasses, which are still several years away.

This news has significant implications for the wearables market, as Apple's move into AI-powered devices is likely to drive innovation and competition. With Apple's reputation for delivering user-friendly and seamless experiences, the integration of cameras and AI features into the Apple Watch is expected to further increase the device's appeal and functionality.

The development of AI-powered wearables also raises questions about privacy and data security. As these devices become more advanced and capable of collecting and processing more data, concerns about how this data will be used and protected will grow. Apple will need to address these concerns and ensure that its devices meet the highest standards of privacy and security.

In conclusion, Apple's plans to add cameras and AI features to the Apple Watch by 2027 mark a significant shift in the wearables market. As the technology continues to evolve, it will be important to monitor its development and implications for users, the industry, and society as a whole.