Apple has agreed to a $250 million class-action settlement following allegations that it misled consumers regarding the artificial intelligence capabilities of its latest iPhones. The lawsuit, filed in the U.S. District Court for the Northern District of California, claimed the tech giant saturated the market with deceptive advertisements for “Enhanced Siri” features that did not exist at the time of purchase.
The Core of the Dispute
The legal trouble began after Apple’s summer 2024 marketing campaign for “Apple Intelligence”. Plaintiffs alleged that Apple showcased a fully operable, AI-upgraded Siri in keynote presentations and high-profile commercials, such as those featuring actress Bella Ramsey, despite those features being unavailable to users.
While Apple Intelligence features like “Writing Tools” and “Genmoji” eventually launched, the highly anticipated “Siri 2.0” overhaul faced significant setbacks. The lawsuit alleged that many consumers purchased the iPhone 16 and high-end iPhone 15 models specifically for these AI promises, only to find the technology was delayed.
Payouts and Eligibility
The settlement paves the way for approximately 36 to 37 million eligible iPhone owners to claim a piece of the $250 million pool.
- Eligible Devices: The settlement covers the iPhone 16 series (including 16 Plus, Pro, Pro Max, and 16e) as well as the iPhone 15 Pro and iPhone 15 Pro Max.
- Timeframe: To be eligible, users must have purchased these devices in the United States between June 10, 2024, and March 29, 2025.
- Estimated Payouts: Claimants are expected to receive a presumptive payment of $25 per device. Depending on the total number of claims filed, this amount could increase to a maximum of $95 per device.
Apple’s Stance and the Road Ahead
As part of the settlement, Apple has denied any wrongdoing. The company maintained that its advertisements were not misleading because it disclosed from the start that Apple Intelligence features would be “delivered over time”. An Apple spokesperson stated the company decided to resolve the matter to “stay focused on doing what we do best, delivering the most innovative products and services to our users”.
For users still waiting for the promised AI revolution, the wait continues. Reports indicate that the full “Siri 2.0” overhaul has been pushed back to 2026. Apple also recently confirmed it would partner with Google to use Gemini AI models to help power future upgrades to its digital assistant.
While this settlement is currently limited to U.S. residents, it serves as a landmark case for the global tech industry, highlighting the growing legal scrutiny over how companies market “breakthrough” AI technologies. A settlement website with claim instructions is expected to be launched in the coming weeks.
