Apple has agreed to pay $250 million to settle a class action lawsuit accusing it of misleading consumers about the capabilities of its artificial intelligence (AI) features, in one of the most significant legal challenges yet to emerge from the global race to market AI products.
The settlement, which received preliminary approval on May 5, 2026, resolves claims that Apple overpromised the scope of Apple Intelligence, particularly an upgraded version of its Siri voice assistant that it promoted heavily ahead of the iPhone 16 launch in September 2024. Apple admitted no wrongdoing.
Eligible devices include iPhone models with Apple Intelligence support purchased between June 10, 2024 and March 29, 2025 in the United States, encompassing the full iPhone 16 range along with the iPhone 15 Pro and iPhone 15 Pro Max. The settlement offers $25 per eligible device, with that figure potentially rising to $95 per device depending on the number of claims filed. Apple will begin inviting claim submissions within 45 days.
Attorneys for the plaintiffs argued that Apple’s marketing campaign for Apple Intelligence amounted to deceptive advertising. The lawsuit said Apple “promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years,” adding that Apple “saturated the internet, television, and other airwaves to cultivate a clear and reasonable consumer expectation that these transformative features would be available upon the iPhone’s release.”
Central to the complaint was Apple’s portrayal of an enhanced Siri that would transform from a limited voice interface into a full-fledged personal AI assistant. Apple delayed the promised Siri Apple Intelligence features in March 2025 and subsequently pulled its advertising campaign, but the promotional materials had been running for several months by that point.
In a statement, an Apple spokesperson said: “Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”
The case carries implications well beyond its settlement amount. It establishes an early legal benchmark for AI feature misrepresentation at a moment when companies across the technology sector are competing aggressively to announce AI breakthroughs, with attorneys arguing Apple launched its campaign specifically to keep pace with rivals including Anthropic and OpenAI.
Part of the $250 million total will go toward administrative costs and attorneys’ fees, with the remainder available to consumers who file valid claims.
