Apple to pay $250M in iPhone AI settlement

Apple has agreed to a $250 million settlement of a U.S. class-action lawsuit over advertised artificial intelligence features, with eligible buyers of certain iPhone 15 and iPhone 16 models able to claim between $25 and $95 per device.

The settlement applies to consumers who purchased qualifying iPhone 15 and iPhone 16 devices in the United States between June 10, 2024, and March 29, 2025. About 36 million devices sold in that period are covered. Apple must send notice to eligible users within 45 days of May 5.

Plaintiffs alleged Apple overstated the availability of features tied to Apple Intelligence, the company’s AI initiative unveiled in June 2024. Attorneys for the class wrote in court filings that several promoted features were absent when iPhones shipped in September 2024 and that some functions “did not exist at the time, do not exist now, and will not exist for two or more years, if ever.” The lead plaintiff is Peter Landsheft.

The complaint highlighted the absence of Enhanced Siri on shipped iPhone 16 units and other Apple Intelligence features that were delayed or changed after launch. Apple postponed an upgraded Siri release in March 2025 citing quality concerns. The company also disabled a Notification Summaries feature after it produced inaccurate representations of news reports.

Apple denied any wrongdoing in court papers, arguing the dispute concerned only the availability of two additional features within the broader Apple Intelligence suite. Marni Goldberg, an Apple spokeswoman, wrote in a statement that Apple has introduced dozens of new capabilities since Apple Intelligence debuted and that the company resolved the case to remain focused on delivering products and services to users.

Under the settlement, payouts will be calculated based on the number of approved claims. Eligible consumers who submit claims can receive between $25 and $95 per qualifying device, with total payments drawn from the $250 million fund.

Legal observers note the settlement is among the first major consumer protection resolutions tied to marketing claims about AI features. The case will be watched as companies continue to promote AI functionality and as courts and regulators consider how to handle gaps between marketing claims and delivered capabilities.

The settlement arrives while Apple has adjusted its AI strategy. John Giannandrea, the company’s head of artificial intelligence, retired in December. In January, Apple announced it would use Google’s Gemini to power some AI offerings, including work on Siri. The company also reported strong demand for Mac mini and Mac Studio models and described those machines as well-suited for AI workloads.