Apple reaches $250m settlement over AI claims

Apple will pay $25 to $95 to some U.S. iPhone buyers after reaching a $250 million settlement over claims it misled people on the abilities of its artificial intelligence system.

This settlement, reached Tuesday in a California federal court, involves multiple class action lawsuits filed in 2025. A judge must still OK the settlement, in which Apple did not admit any wrongdoing. Under it, Apple will pay up to $95 to those who purchased an iPhone 16 or some iPhone 15 models between June 2024 and March 2025, The New York Times reported.

The suits alleged that Apple marketing misled buyers about what its Apple Intelligence system could do, including an extensive update of the voice assistant Siri. The company first announced the AI system in June 2024.

“Apple promoted AI capabilities that did not exist at the time, do not exist now and will not exist for two or more years, if ever, all while marketing them as the breakthrough innovation,” lawyers said in the complaint, the BBC reported.

The early promotions for Apple Intelligence on iPhones showed major AI improvements to Siri, notification summaries and writing assistance. However, new iPhones released starting in fall 2024 had no such features, The New York Times said. While Apple eventually rolled out some versions of these abilities, there were extensive issues, and some features were disabled or delayed.

An Apple spokesperson said that lawsuits were about two features out of many successful aspects of Apple Intelligence.

“We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users,” the statement said.

Apple has not focused on AI capabilities as much as other companies, such as Microsoft and Google. In January, the company announced it would use Google’s Gemini to power Siri and other AI aspects.

Copyright 2026 UPI News Corporation. All Rights Reserved.

This story was originally published May 6, 2026 at 11:58 AM.