Apple Settles iPhone AI Lawsuits for $250 Million

Apple has recently reached a settlement to resolve several legal complaints, agreeing to pay $250 million. These complaints alleged that the company misled consumers regarding the artificial intelligence (AI) capabilities of its iPhones. This settlement pertains to eligible consumers who purchased an iPhone 16 or certain models of the iPhone 15 during a specified period.

This settlement represents another setback for Apple, which is struggling to integrate generative AI features into its smartphones, unlike its Android competitors. The highly anticipated Apple Intelligence was only partially launched with the iPhone 16 lineup in September 2024. Some features were introduced later, while others, such as an enhanced version of Siri, have been delayed until 2025 and are still not integrated into the phones.

The class action lawsuits filed allege that Apple misrepresented the AI capabilities of its iPhones, which is addressed in this settlement. However, as part of this agreement, Apple denied any wrongdoing. When asked for comment, Apple cited the numerous features introduced since the launch of Apple Intelligence, including Visual Intelligence, Live Translation, Writing Tools, Genmoji, and Clean Up.

An Apple spokesperson stated, "Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on what we do best, which is providing the most innovative products and services to our users."

Anyone living in the United States who purchased a phone from the iPhone 16 series, an iPhone 16E, an iPhone 15 Pro, or an iPhone 15 Pro Max between June 10, 2024, and March 29, 2025, can claim a share of the $250 million settlement fund. Compensation starts at $25 per device, an amount that may be higher or lower depending on the number of people claiming their share. The maximum compensation is $95 per device.

At the heart of the class action complaints are allegations that Apple's advertising focused on certain Apple Intelligence features that were not launched with the iPhone 16 devices (or that did not arrive as upgrades on the iPhone 15 Pro and Pro Max). According to the settlement, "Apple allegedly saturated the market with misleading advertisements, prompting consumers to purchase iPhones on the promise of certain enhanced Siri features."

Apple has yet to deliver these enhanced Siri features but announced in January that it would use Google's Gemini AI models and cloud technology to power an upgrade to its on-device assistant. A report suggested this would happen in February, which did not occur; Google later confirmed that the upgrade would arrive before the end of 2026, according to MacRumors.

The settlement also states that Apple plans to deliver additional Apple Intelligence features for Siri in future software updates at no extra cost.