Apple Pays $250 Million for Unfulfilled AI Promise

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Key Takeaways

1Apple must pay $250 million to settle allegations of false advertising related to AI in the United States.

2American iPhone consumers filed a lawsuit, claiming they were misled by Apple's unfulfilled promises regarding Apple Intelligence.

3The new version of Siri, expected in 2024, is finally set to launch this year thanks to a partnership with Google.

💡Why it matters — This case highlights the importance for Apple to uphold its technological commitments to maintain its credibility and competitiveness.

A Promising Keynote but a Notable Absence

At the WWDC conference in June 2024, Apple captured attention with a masterful keynote. For an hour, executives showcased a series of new features for the company's platforms. However, the real surprise came at the end when Tim Cook unveiled Apple Intelligence. For forty minutes, Apple presented AI-based features for various products, including the iPhone. While some features began rolling out as early as October 2024, the major update for Siri remains elusive.

A Costly Promise for Apple

This absence has significant financial repercussions for Apple. According to the Financial Times, the company is set to pay $250 million to settle allegations of false advertising in the United States. This agreement, pending approval from a California judge, does not constitute an admission of guilt by Apple. The lawsuit comes from a group of American iPhone buyers who claim they were misled. Advertisements for Apple Intelligence were aired and then pulled, as the promised flagship feature is still unavailable. Apple told the Financial Times: "We have resolved this matter to focus on our core mission: to deliver the most innovative products and services to our users." The new version of Siri was supposed to act as an advanced AI agent, facilitating numerous actions on iPhone apps with minimal user effort.

A More Complex Development Than Expected

The development of this feature has proven to be more challenging than anticipated. To break this deadlock, Apple had to partner with Google to leverage Gemini technologies. During its financial results presentation, Apple confirmed that the new Siri would finally be available this year.

Record Sales Despite Everything

Despite this apparent setback, iPhone sales have never been more robust. Apple has focused on the technical features of the iPhone 17 series and a redesign of its operating system to attract consumers. This strategy has paid off, with sales reaching unprecedented levels.

The Importance of AI for Apple's Future

However, to prevent the iPhone from becoming obsolete, Apple must urgently improve Siri. Rumors are circulating that OpenAI could launch a smartphone optimized for AI agents based on ChatGPT as early as next year. Furthermore, a more capable Siri is crucial for the launch of new product categories, such as smart glasses, which heavily rely on AI.

A Lesson for Apple

Although Apple does not admit its mistake, it is clear that the premature presentation of the new Siri was a blunder. Nevertheless, the company's current financial results remain excellent. The delay in the AI space should be bridged through collaboration with Google.