Apple to pay $250M to settle lawsuit over Siri’s delayed AI features

In a significant development, Apple has reached a $250 million settlement in a class-action lawsuit concerning the marketing of its AI features prior to the iPhone 16 launch. The Financial Times was the first to break this news. The lawsuit contended that Apple misrepresented the capabilities of Apple Intelligence, particularly the enhancements expected for its virtual assistant, Siri. Plaintiffs argued that the tech giant led consumers to believe that advanced AI functionalities would be available much sooner than they actually were. Specifically, the complaint accused Apple of exaggerating both the readiness and performance of these anticipated features. Customers who purchased the iPhone 15 or iPhone 16 were reportedly under the impression they were investing in cutting-edge AI tools that were not yet functional at the time of their purchase. This situation was framed as misleading advertising, suggesting that Apple's promotional strategies significantly swayed consumer buying decisions based on incomplete or delayed features. While Apple did not admit to any wrongdoing in court, the decision to settle the case avoids prolonged litigation. As part of the proposed agreement, eligible U.S. consumers who bought the iPhone 15 or iPhone 16 between June 10, 2024, and March 29, 2025, may receive compensation of up to $95 per device. Since the introduction of Apple Intelligence in 2024 during the WWDC event, Apple has been promising an upgraded Siri experience. The upcoming enhancements are expected to align Siri more closely with contemporary AI chatbots like ChatGPT or Claude. Rumors suggest that the improved functionality might be driven by Google Gemini, but recent reports indicate that the next version of Apple's operating system could allow users to select from various third-party large language models. The settlement comes just ahead of Apple's annual developer conference on June 8, where a preview of the AI-enhanced Siri is anticipated.