Apple to Pay $250 Million to Settle iPhone AI False Advertising Lawsuit

Apple reached a $250 million settlement on Tuesday to resolve a class-action lawsuit alleging the company engaged in false advertising regarding its artificial intelligence capabilities. The legal action was filed on behalf of consumers who purchased certain iPhone models based on marketing for "Apple Intelligence" features that have yet to be fully realized. Eligible owners of these devices are now in line to receive cash payments of up to $95 as part of the agreement.^[1][2]

The lawsuit focused on the marketing campaign surrounding the iPhone 16 rollout in 2024. At the time, Apple trumpeted new AI features for its virtual assistant, Siri, as part of a software update package billed as "Apple Intelligence." However, the company has reportedly struggled to keep up with tech rivals during the ongoing AI boom and has still not delivered the promised Siri revamp two years after the initial announcement.^[1][2]

The settlement addresses allegations that Apple misled consumers about the AI capabilities of its latest iPhones. While the company has been working to integrate more advanced technology into its ecosystem, the lawsuit claimed that the promotional materials did not accurately reflect the actual functionality available to users. This payout follows a period where Apple has been scrambling to match the AI advancements of its industry competitors.^[1][2]