Apple has agreed to pay $250 million to settle a class-action lawsuit in the United States that accused the tech giant of misleading iPhone buyers over the availability of artificial intelligence (AI) features, particularly enhancements to its Siri voice assistant.
The proposed settlement, which still requires court approval, applies to millions of U.S. consumers who purchased certain iPhone models marketed with advanced AI capabilities that were not fully delivered at launch.
The lawsuit centred on Apple’s promotion of its “Apple Intelligence” platform during 2024, when the company advertised a more personalised, AI-powered version of Siri. Plaintiffs argued that the marketing created a “clear and reasonable consumer expectation” that these features would be available when the devices were released.
However, when the iPhone 16 lineup launched later that year, many of the promised AI capabilities were either missing or significantly limited. Some features were introduced gradually, while others, especially the upgraded Siri, were delayed further, with full functionality still pending as of 2026.
According to court filings, the case covers roughly 36 million eligible devices sold between June 2024 and March 2025. Consumers who qualify for the settlement may receive payments ranging from about $25 to $95 per device, depending on the number of claims submitted.
Apple has denied any wrongdoing as part of the agreement. In a statement addressing the settlement, the company said: “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”
The lawsuit also drew scrutiny from regulators. The Better Business Bureau’s National Advertising Division had previously found that Apple’s marketing suggested the AI-powered Siri features were “available now,” prompting the company to revise its advertising claims.
Legal representatives for the plaintiffs described the settlement as a significant step for consumer protection in the rapidly evolving AI sector. Ryan Clarkson, a lead attorney in the case, said the outcome ensures that consumers can “feel confident and protected” when purchasing new technologies.
The case highlights growing legal and regulatory pressure on technology companies over how they present AI capabilities to the public. As competition intensifies in the AI space, firms are increasingly being held accountable for ensuring that advertised features match real-world performance.
Apple, for its part, says it has continued to roll out other AI-driven tools since 2024 and plans to unveil further updates in the near future. A final court hearing to approve the settlement is expected in the coming weeks. If approved, eligible iPhone users will be able to submit claims for compensation shortly thereafter.
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