Apple Agrees to Pay $250 Million in iPhone AI Lawsuit Settlement

Apple has announced its agreement to pay $250 million to settle a class-action lawsuit in the United States. The lawsuit accused the company of misleading users about the AI capabilities in its iPhone 16 phones. The details of the case go back to 2024, when Apple promoted features under the name "Apple Intelligence" along with extensive updates for its voice assistant, Siri. However, these features were not available when the devices launched, leading users to file a lawsuit accusing the company of deceiving consumers and harming shareholders. The proposed settlement, which is still awaiting judicial approval, includes users within the United States who purchased iPhone 16 devices, or iPhone 15 Pro and Pro Max, between June 2024 and March 2025. Estimates suggest that the number of covered devices reaches approximately 36 million, with affected individuals potentially receiving compensation of up to $95 per device. It is not yet clear whether this compensation will include users outside the American market. For its part, Apple denied any wrongdoing, stating that it resorted to the settlement to focus on developing products and services rather than engaging in prolonged legal disputes, all while continuing to boost its investments in artificial intelligence. The company added that it has already launched a number of AI features since 2024, noting that comprehensive updates for Siri will be unveiled during the Worldwide Developers Conference (WWDC) next month. These developments come amid a rapidly accelerating global race in generative AI, where Apple is striving to strengthen its position against major competitors like Google, Meta, and OpenAI. CEO Tim Cook affirmed that AI is no longer an additional feature but has become an essential component in the future of Apple devices. This has prompted the company to expand its technological partnerships recently to enhance its capabilities in this growing field.