Apple has reached a settlement agreement in the United States to pay $250 million in response to a class action lawsuit alleging that the company misled consumers about the functionality of its artificial intelligence (AI) features on recent iPhone models.
The settlement pertains to customers who purchased devices from the iPhone 16 and iPhone 15 Pro series between June 10, 2024, and March 29, 2025. Eligible claimants could potentially receive $25 per device, with the amount possibly increasing to $95 based on the total number of claims and other variables, as outlined in a recent blog post by the legal team at Clarkson Law Firm, the firm representing the case.
The lawsuit, initiated in 2025, contended that Apple’s marketing led consumers to expect that its suite of AI features, known as Apple Intelligence, would be fully operational upon launch. Consumers claimed that upon receiving the devices, they discovered that certain functions were limited or missing, sparking discussions regarding the transparency of technology companies in communicating evolving AI capabilities to the public.
Apple initially unveiled its AI initiatives at the annual Worldwide Developers Conference in June 2024, showcasing a more personalized version of its voice assistant, Siri. However, upon the release of the iPhone 16 series in September, several promised features were not immediately accessible, despite marketing materials touting the devices as being optimized for Apple Intelligence.
Subsequently, Apple rolled out features gradually, including tools like Image Playground, Genmoji, and an integration with ChatGPT within Siri. A more advanced, personalized iteration of Siri is anticipated to debut later this year.
The company faced regulatory scrutiny as well. In April, the U.S. National Advertising Division advised Apple to modify or retract claims implying that Apple Intelligence features were currently available on its website. Following this, Apple removed an advertisement featuring actress Bella Ramsey showcasing the enhanced Siri capabilities from the iPhone 16.
