Apple settles $250m AI lawsuit for iPhone buyers

Apple has made an agreement to provide compensation totaling $250 million (£184 million) to certain iPhone users to resolve a lawsuit claiming the company misled customers regarding new artificial intelligence (AI) features.

As part of a settlement submitted on Tuesday in a federal court in California, Apple has not admitted to any wrongdoing but has agreed to settle claims from a large class action lawsuit consolidated last year.

The lawsuit alleged false advertising by Apple regarding AI capabilities on the iPhone, referred to by the company as Apple Intelligence, which included enhancements to its Siri voice assistant.

Apple will compensate individuals who purchased an iPhone 15 and iPhone 16 between June 2024 and March 2025 with payments ranging from $25 to $95.

An Apple spokesperson stated that the lawsuit centered on "the availability of two added features" among numerous others introduced as part of the Apple Intelligence launch.

"We've resolved this issue to maintain our focus on delivering the most innovative products and services to our users," the spokesperson commented.

In a recently amended complaint filed last week for the consolidated class of iPhone buyers, attorneys argued that Apple's promotion of new AI features constituted misleading advertising.

"Apple advertised AI advancements that were not present at the time of marketing, are currently unavailable, and may not be realized for several more years, if ever, yet were promoted as breakthrough innovations," the attorneys stated.

They further claimed that Apple pursued this AI-focused campaign to compete in the Big Tech race driven by new companies such as OpenAI and Anthropic.

Over the years, outgoing CEO Tim Cook has faced criticism for not delivering significant innovations with Apple's products.

However, claims that Apple Intelligence would provide iPhone users with an upgraded Siri transforming it from a "basic voice interface to a comprehensive personal AI assistant" were reportedly unfounded.