Apple to pay $250 million over AI feature claims
Apple has agreed to pay up to $95 to some US iPhone buyers to settle a lawsuit accusing the company of misleading customers about artificial intelligence features. The $250 million settlement, filed Tuesday in California federal court, resolves a consolidated class action that challenged Apple's marketing of Apple Intelligence capabilities.
The settlement applies to people who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025. Apple did not admit wrongdoing as part of the deal.
What the lawsuit alleged
Class action lawyers said Apple promoted AI capabilities that did not exist when marketed. The company specifically highlighted an enhanced version of Siri that would transform it from a "limited voice interface into a full-fledged personal AI assistant," according to the complaint.
"The iPhone 16 was delivered to consumers without Apple Intelligence, and Enhanced Siri never came," the lawyers wrote in a revised complaint filed last week.
The lawsuit claimed Apple undertook this marketing campaign to compete in the technology industry race for AI, driven by companies like OpenAI and Anthropic. An Apple spokeswoman said the lawsuit focused on "the availability of two additional features" among many released as part of the Apple Intelligence rollout.
The business context
Chief executive Tim Cook has faced criticism over the years for lacking product innovation. The Apple Intelligence announcement in 2024 represented a significant push by the company to establish itself in the generative AI market.
Apple said it resolved the matter "to stay focused on doing what we do best, delivering the most innovative products and services to our users."
For professionals in finance and IT, this settlement underscores the legal and financial risks companies face when marketing AI features before they are ready for release. Learn more about generative AI and large language models to understand the technical capabilities these systems actually offer.
Your membership also unlocks:
