Apple has agreed to pay $250 million to settle a class action lawsuit over claims it overstated the capabilities and readiness of its AI features ahead of the launch of the iPhone 16.
The lawsuit alleged that Apple’s marketing around Apple Intelligence created the impression that advanced AI tools — particularly a significantly upgraded version of Siri — would be available sooner and with broader functionality than was actually the case.
According to the complaint, customers who purchased the iPhone 15 or iPhone 16 believed they were paying for cutting-edge AI capabilities that had not yet fully materialised, leading to accusations of false advertising and misleading marketing.
Apple has not admitted wrongdoing but chose to settle the case rather than continue litigation. Under the proposed agreement, eligible U.S. customers who bought an iPhone 15 or iPhone 16 between June 10, 2024 and March 29, 2025 could receive up to $95 per device.
Apple first unveiled Apple Intelligence during WWDC 2024, positioning the enhanced Siri experience as a major step forward in conversational AI. The upgraded assistant is expected to function more like modern AI chatbots such as ChatGPT and Claude.
Reports have suggested the new Siri could be powered in part by Google Gemini, while newer leaks indicate future iPhone software may allow users to choose between multiple third-party large language models.
The settlement comes ahead of Apple’s next developer conference on June 8, where the company is expected to showcase a more advanced AI-powered Siri experience.
