Apple to Pay $250M in Settlement Over AI Misleading Claims

Apple Settles Legal Complaints Over AI Capabilities on iPhones

Apple has reached a settlement in several legal cases where it was accused of misleading consumers about the artificial intelligence (AI) capabilities of its iPhones. The company recently agreed to pay $250 million to qualifying consumers who purchased specific iPhone models within a defined timeframe. This settlement comes as Apple continues to face challenges in integrating generative AI features into its smartphones, lagging behind some of its Android competitors.

The lawsuit involved shareholders and consumers who claimed that Apple misrepresented the AI features available on its devices. The settlement includes payments for buyers of the iPhone 16 series, including the iPhone 16E, as well as certain iPhone 15 Pro and Pro Max models. The eligible period for claiming the settlement is from June 10, 2024, to March 29, 2025. Each device could be eligible for a minimum of $25, with the maximum payout reaching $95 per device, depending on the number of claims submitted.

Apple Intelligence Launches with Limited Features

Apple's much-anticipated Apple Intelligence feature was only partially launched on the iPhone 16 line in September 2024. Some features were delayed, while others, such as an upgraded version of Siri, were pushed back to 2025. This partial rollout led to class-action lawsuits, which alleged that Apple exaggerated the AI capabilities of its devices in marketing materials.

Despite these challenges, Apple maintains that it has introduced numerous new features since the launch of Apple Intelligence. These include Visual Intelligence, Live Translation, Writing Tools, Genmoji, and Clean Up. An Apple spokesperson stated that the company reached the settlement to focus on delivering innovative products and services to its users.

Class Action Allegations and Settlement Details

The core of the class action complaints centered around Apple's advertising that highlighted certain Apple Intelligence features that were not available at the time of the iPhone 16's release. According to the settlement, Apple allegedly used deceptive advertisements to encourage consumers to purchase iPhones based on the promise of enhanced Siri features.

Although these enhanced Siri features have not yet been delivered, Apple announced in January that it would use Google’s Gemini AI models and cloud technology to upgrade its on-device assistant. A previous report suggested the update would arrive in February, but this did not happen. Google later confirmed that the upgrade is expected by the end of 2026.

Future Updates and Consumer Claims

The settlement also indicates that Apple expects to deliver additional Siri-related Apple Intelligence features through future software updates without any additional cost to users. This suggests that the company plans to continue improving its AI capabilities over time.

Consumers who believe they are eligible for the settlement can claim their share starting at $25 per device. The exact amount they receive will depend on the total number of claims processed. Those interested in filing a claim should check the official settlement website for more details.