Apple will resolve a lawsuit regarding Siri's delayed AI functionality for $250 million

Apple has agreed to pay $250 million to settle a class action lawsuit related to how it marketed its AI features ahead of the launch of the iPhone 16. The case centered around claims that the company overstated the capabilities and readiness of its AI system, known as Apple Intelligence, particularly improvements to its virtual assistant Siri.

The lawsuit alleged that Apple created the impression that advanced AI features would be available to users much sooner than they actually were. According to the complaint, the company’s marketing suggested that a significantly upgraded Siri and other AI-powered tools would be ready at launch or shortly after. However, many of these features were either delayed or not fully functional at the time customers purchased their devices.

Plaintiffs argued that this amounted to false advertising, claiming that consumers who bought the iPhone 15 or iPhone 16 did so expecting cutting-edge AI capabilities that were not yet available. The lawsuit emphasized that Apple’s promotional messaging influenced buying decisions, leading customers to pay premium prices for features that had not materialized.

While Apple has not admitted any wrongdoing, it has chosen to settle the case rather than continue with lengthy legal proceedings. Under the proposed settlement, eligible customers in the United States who purchased an iPhone 15 or iPhone 16 between June 10, 2024, and March 29, 2025, may receive compensation of up to $95 per device.

The controversy stems from Apple’s broader push into artificial intelligence, which it highlighted during its 2024 Worldwide Developers Conference (WWDC). At the event, the company introduced Apple Intelligence, promising a more advanced and capable Siri designed to compete with modern AI chatbots like ChatGPT and Claude. However, the rollout of these features has taken longer than expected.

Reports suggest that Apple may rely on external AI technologies, including Google Gemini, to power future improvements. Additionally, upcoming versions of Apple’s operating system may allow users to choose between different third-party AI models, signaling a more flexible approach to AI integration.

The settlement comes just ahead of Apple’s annual developer conference, where the company is expected to preview new updates to Siri and its AI ecosystem. Industry observers will be watching closely to see whether Apple can deliver on its earlier promises and regain user trust.

Overall, the case highlights growing scrutiny over how tech companies market AI features, especially as competition intensifies and expectations rise in the rapidly evolving AI landscape.