Apple has settled several legal complaints alleging that it misled people about the capabilities of AI on its iPhones. The company on Tuesday settled a shareholder lawsuit, agreeing to pay $250 million to qualifying consumers who bought iPhone 16 and certain iPhone 15 models within a specified period.
This is another setback for Apple, which has struggled to incorporate generative AI features into its smartphones compared with its Android rivals. The much-hyped Apple Intelligence only partially launched on the iPhone 16 line in September 2024, with some features arriving later and others, like an upgraded Siri, delayed through 2025 and not yet making it to the phones.
This led to class action lawsuits alleging that Apple misrepresented its iPhones' AI capabilities, which are addressed in this settlement. As part of the settlement, however, Apple denied any wrongdoing. When reached for comment, Apple cited the dozens of features that have been introduced since Apple Intelligence launched, including Visual Intelligence, Live Translation, Writing Tools, Genmoji and Clean Up.
"Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users," an Apple spokesperson said.
Anyone living in the US who bought a phone from the iPhone 16 series, an iPhone 16E, an iPhone 15 Pro or an iPhone 15 Pro Max from June 10, 2024, through March 29, 2025, can claim a part of the $250 million settlement pool, starting at $25 per device, which may be higher or lower depending on how many people apply to claim their portion. Recompense maxes out at $95 per device.
Central to the class action complaints are allegations that Apple's advertising centered on certain Apple Intelligence features that didn't launch with the iPhone 16 devices (or arrive as an upgrade on the iPhone 15 Pro and Pro Max).
"Apple allegedly saturated the market with deceptive ads, inducing consumers to purchase iPhones based on the promise of certain Enhanced Siri features," according to the settlement.
Apple still hasn't delivered these Enhanced Siri features, but it announced in January that it would use Google's Gemini AI models and cloud technology to power an upgrade to its on-device assistant. A report suggested it would arrive in February, which didn't happen. Google later affirmed that the upgrade was coming before the end of 2026, according to MacRumors.
"The settlement also reflects that Apple anticipates delivering additional Siri Apple Intelligence features in future software updates at no additional cost," the settlement read.
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