From an extensive interview; also see We read that 10,000-word interview with Apple CEO Tim Cook so you don’t have to (Recode)
"Do you have a concern about privacy as you push into AI?Tim Cook, the interview: Running Apple 'is sort of a lonely job' | The Washington Post
No. I think that talented people can come up with fantastic ways of using AI without violating privacy. There’s a new technology called differential privacy which essentially looks at large data sets to predict user behaviors and requests without going to the precise individual, which might violate privacy.
Now there are some things that we do look at — like if you buy songs, it’s a reasonable expectation that we know what songs you buy because you buy them from us. And we use that information with machine learning to recommend other songs you might like.
What about augmented or virtual reality?
I think AR [augmented reality] is extremely interesting and sort of a core technology. So, yes, it’s something we’re doing a lot of things on behind that curtain that we talked about. [Laughs.]"