Apple has agreed to pay customers a collective $250 million to end a lawsuit accusing the company of misleading them about new artificial intelligence features and capabilities.
Apple did not admit any wrongdoing in the settlement, which was filed on Tuesday. However, it agreed to a deal that will resolve claims in a large consolidated class action lawsuit filed last year.
The lawsuit accused Apple of misleading customers about their AI capabilities, which the company called Apple Intelligence, including an enhancement of its Siri voice assistant.
Apple will pay between $25 and $95 to people in the US who bought an iPhone 15 and iPhone 16 between June 2024 and March 2025.
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The lawsuit was focused on “the availability of two additional features” in a lineup of many released as part of its Apple Intelligence rollout, according to a spokesperson. “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users”, the spokesperson said.
Lawyers said in a revised complaint filed last week, that Apple’s marketing around AI features amounted to false advertisement. “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 wrote.
Apple has been seen as lagging behind its competitors when it comes to incorporating AI features in its products. The campaign around Apple Intelligence seems to be an effort to catch up with other tech companies in the AI race.
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Apple recently announced that its CEO Tim Cook will transition to the role of the executive chairman of the company’s board of directors. John Ternus, the company’s senior vice president of Hardware Engineering, will become Apple’s next chief executive officer effective on September 1, 2026.
Reports have named AI as the biggest upcoming challenge for Ternus. Apple has been slow in jumping onto the AI bandwagon, choosing to incorporate OpenAI’s ChatGPT and Google’s Gemini technology into its operating systems, unusually choosing partnerships over proprietary AI in this booming area of the industry.
Apple says Cook will continue in his role as CEO through the summer as he works closely with Ternus on a smooth transition. Cook’s role as executive chairman will assist with certain aspects of the company, including engaging with policymakers around the world.