SAN FRANCISCO: Apple has agreed to pay $250 million to settle a class-action lawsuit accusing the company of exaggerating the artificial intelligence capabilities of its Siri voice assistant to drive iPhone sales.
The case centres on Apple’s heavily promoted AI-powered Siri features unveiled in 2024, which plaintiffs argued were either unavailable or far from launch despite being marketed as key selling points for the iPhone 16 lineup.
According to court documents, Apple was accused of having “promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years” in an effort to boost device sales.
The settlement, filed in a California federal court, covers around 36 million eligible devices sold in the United States between June 2024 and March 2025, including the iPhone 16, iPhone 15 Pro and iPhone 15 Pro Max.
Under the agreement, eligible users could receive at least $25 per device, with payouts potentially rising depending on the number of approved claims.
New Siri functions
The lawsuit highlighted growing pressure on major technology firms racing to market AI products amid intense competition in the artificial intelligence sector.
The Better Business Bureau’s National Advertising Division had also concluded that Apple misleadingly suggested the enhanced AI Siri system was “available now” despite delays in deployment.
Apple later withdrew advertisements promoting the new Siri functions and confirmed the rollout had been postponed indefinitely.
“We resolved this matter to stay focused on what we do best: delivering the most innovative products and services to our users,” Apple told the media.
The proposed settlement does not include any admission of wrongdoing and still requires approval from a federal judge at a hearing scheduled for June 17.
