Apple Settles iPhone AI Advertising Lawsuit for $250 Million

Apple has agreed to pay certain iPhone buyers $250 million (£184 million) to settle a lawsuit that accused the company of misleading consumers about new artificial intelligence features and capabilities.

The settlement, filed Tuesday in California federal court, resolves claims in a large consolidated class action lawsuit filed last year. Apple did not admit wrongdoing.

The suit accused Apple of false advertising for its AI features on the iPhone, branded as Apple Intelligence. Those features include an upgrade to the Siri voice assistant.

Apple will pay between $25 and $95 to people who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025.

An Apple spokeswoman said the lawsuit centered on "the availability of two additional features" among many released in the Apple Intelligence rollout.

"We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users," she said.

Lawyers for the consolidated class of iPhone buyers filed a revised complaint last week. They claimed Apple's marketing of the new AI features amounted to false advertising.

"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.

They said Apple launched the AI campaign to catch up in a Big Tech race for new technology led by companies like OpenAI and Anthropic.

Outgoing chief executive Tim Cook has faced criticism over the years for not innovating enough with Apple's products.

Apple marketed Apple Intelligence as delivering iPhone customers a new, improved Siri. The company described it as transforming Siri from a "limited voice interface into a full-fledged personal AI assistant." Lawyers called that claim false.