Apple Reaches $250 Million Settlement Over Claims It Misled People on AI
Apple agreed on Tuesday to pay $250 million to settle authorized claims that it misled customers concerning the talents of its synthetic intelligence system, Apple Intelligence, in response to court docket filings.
The settlement resolves a handful of sophistication motion lawsuits filed in opposition to Apple final yr, which claimed the corporate oversold what its product might do throughout its rollout in 2024. Those fits had been consolidated final yr by the US District Court for the Northern District of California, the place a choose nonetheless must approve the settlement.
Consumers who bought an iPhone 16 and a few fashions of the iPhone 15 between June 2024 and March 2025 will probably be eligible to gather as much as $95 per machine, in response to the filings. As a part of the settlement, Apple denied any wrongdoing.
The settlement highlights Apple’s challenges in a world know-how race to dominate AI The iPhone maker has largely sat it out, partially as a result of it hasn’t constructed its personal AI fashions like Google’s Gemini. Tech firms like Microsoft and Nvidia soared in worth as they wager closely on the know-how.
Since “the launch of Apple Intelligence, we have introduced dozens of features across many languages that are integrated across Apple’s platforms,” Marni Goldberg, an Apple consultant, mentioned in a press release. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”
Apple first teased Apple Intelligence in June 2024 as a solution to merchandise like OpenAI’s ChatGPT. The firm promised large enhancements to its private assistant, Siri, which has been a part of its gadgets for greater than a decade.
But these options weren’t out there on the iPhones that Apple shipped in September 2024. Instead, the corporate regularly rolled out the promised options and shortly bumped into issues. Notification summaries misrepresented news reportsfor instance, and Apple disabled that characteristic. In March 2025, Apple delayed the discharge of an upgraded Siri over high quality issues.
Apple misrepresented the “capabilities of the series 16 iPhone and deceived millions of consumers into spending hundreds of dollars on a phone they did not need, based on features that do not exist,” in response to one of many class motion lawsuits.
In December, Apple announced the retirement of its head of AI, John Giannandrea. In January, the corporate mentioned it will use Google’s Gemini to energy its AI merchandise, together with Siri.
