Apple settles Siri lawsuit, iPhone 16 owners to get $250M payout

Apple Settles Lawsuit Over Siri AI Features

Apple has reached a significant settlement in a class-action lawsuit related to the lack of artificial intelligence (AI) capabilities in its virtual assistant, Siri. The case, which involved claims of false advertising, could result in payments for consumers who purchased certain iPhone models between 2024 and 2025.

The tech giant agreed to pay $250 million (£184 million) in a U.S. federal court in San Jose, California. The lawsuit was filed by Peter Landsheft in 2024, following Apple’s announcement at its annual software developer conference about a range of AI upgrades. These features were expected to be available with new iPhones released that autumn. However, the anticipated enhancements did not materialize, leading to legal action.

The plaintiffs argued that the absence of these features harmed shareholders and misled consumers. In 2025, Apple confirmed that the AI improvements for Siri would not be available until later that year. Executives have since stated that the updated Siri features will be unveiled at Apple’s Worldwide Developer Conference (WWDC) next month.

Eligibility for Compensation

Consumers who purchased an iPhone 16, iPhone 15 Pro, or Pro Max in the United States between June 2024 and March 2025 may be eligible for compensation. The estimated maximum payment per device is $95, and approximately 36 million iPhone owners could be affected. It remains unclear whether this settlement will extend to users outside the U.S.

Apple has not admitted any fault in the settlement, which still requires judicial approval. In a statement, the company highlighted that it has introduced numerous other AI features since the launch of what it calls Apple Intelligence in 2024.

“Apple has reached a settlement to resolve claims related to the availability of two additional features,” the statement said. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”

Evolution of Siri

The revamped Siri comes 15 years after the voice assistant first launched on the iPhone, setting the standard for the technology at the time. However, Apple has lagged behind competitors such as Google and Meta in developing AI chatbots. Newer companies like Anthropic and OpenAI have also made significant strides in the field.

Apple CEO Tim Cook has prioritized improving Siri, pushing for partnerships with other firms to enhance its AI capabilities. During an earnings call last week, he emphasized that AI should not be seen as a standalone feature but as an essential and intuitive part of Apple devices.

“This is not AI as a standalone feature, but AI as an essential and intuitive part of our devices,” Cook said.

Ongoing Developments

Apple continues to invest in AI technology, recognizing its importance in the evolving tech landscape. The company's efforts reflect a broader industry trend toward integrating AI into everyday devices and services. As Apple prepares to unveil its latest updates at WWDC, the focus remains on delivering innovative solutions that meet user expectations.

Additional reporting from agencies.