Apple has agreed to pay an estimated £184 million—around $250 million—in total to certain iPhone customers to settle a lawsuit alleging the company misled people about the novelty of its artificial intelligence (AI) features and what they can do.
Apple agreed to a settlement that will pay claims in a sizable consolidated class action case filed last year, but it did not acknowledge any wrongdoing in the California federal court accord.
It charged Apple with misrepresenting its artificial intelligence (AI) features in the iPhone, which it dubbed Apple Intelligence, including an improvement to its Siri speech assistant.
Those who purchased an iPhone 15 or iPhone 16 between June 2024 and March 2025 will receive payment from Apple ranging from $25 to $95.
The case, according to an Apple representative, was centred on “the availability of two additional features” among a number of capabilities made available as part of the company’s rollout of Apple Intelligence.
”We settled this issue so that we could continue to concentrate on what we do best—providing our customers with the most cutting-edge goods and services,” she stated.
Attorneys claimed that Apple’s marketing around new AI functions amounted to deceptive advertising in an amended lawsuit submitted last week for the consolidated class of iPhone buyers.
”Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever, all while marketing them as the breakthrough innovation,” attorneys said.
They further stated that Apple launched this AI-focused campaign in an attempt to catch up in the Big Tech competition for cutting-edge technology being spearheaded by startups like Anthropic and OpenAI.
Over the years, Tim Cook, the company’s departing CEO, has come under fire for not being creative enough with Apple’s products.
However, it allegedly misrepresented Apple Intelligence’s ability to provide iPhone users with an improved version of Siri that would turn it from a “limited voice interface into a full-fledged personal AI assistant”.
”Customers received the iPhone 16 without “Apple Intelligence,” and Enhanced Siri never materialised, according to the lawyers’ letter.
