Apple to pay up to $95 to some US iPhone buyers over AI lawsuit

Source: BBC Technology

Apple has agreed to pay some iPhone buyers a collective $250 million (£184 million) to end a lawsuit accusing the company of misleading people about new artificial‑intelligence (AI) features and capabilities.

Settlement details

• The settlement was filed in a California federal court on Tuesday.
• Apple did not admit any wrongdoing but agreed to resolve claims in a large consolidated class‑action lawsuit filed last year.
• Apple will pay between $25 and $95 to U.S. customers who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025.

“We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users,” an Apple spokeswoman said.

Lawsuit claims

• The class action alleged false advertising around Apple’s AI features, branded Apple Intelligence, including an enhanced version of Siri.
• Lawyers argued that Apple promoted AI capabilities that did not exist at the time, do not exist now, and may never exist, while marketing them as breakthrough innovations.
• The complaint suggested Apple’s AI campaign was an attempt to catch up in the “Big Tech race” driven by companies such as OpenAI and Anthropic.

“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,” the lawyers wrote.

Context and criticism

• Outgoing chief executive Tim Cook has faced criticism over the years for perceived lack of innovation at Apple.
• The lawsuit contended that Apple’s marketing of Apple Intelligence promised a new, better version of Siri that would transform it from a “limited voice interface into a full‑fledged personal AI assistant.”
• According to the lawyers, the iPhone 16 was delivered without “Apple Intelligence,” and Enhanced Siri never arrived.

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