Apple agreed to pay $250mn to resolve a class-action lawsuit alleging false advertising about its delayed AI Siri features. The settlement, filed in California federal court, involves US buyers of iPhone 15 and 16 models who claimed the company misled them about AI capabilities. Apple maintained no admission of fault, citing its focus on innovation. The case highlights tensions between consumer expectations and the company’s AI rollout challenges.

The lawsuit accused Apple of promoting AI Siri as a revolutionary tool in 2024, despite the feature remaining unreleased. This followed a surge in AI demand after ChatGPT’s 2022 launch, pushing Apple to partner with OpenAI and Google for AI integration. However, the company faced setbacks, including the departure of top AI executive John Giannandrea and failed product launches. In December 2024, Apple pulled ads featuring Bella Ramsey promoting the AI Siri, acknowledging delays. Tim Cook later admitted the development was “taking longer than expected.” The $250mn sum, if approved, would be one of the largest settlements in Apple’s history, reflecting investor and regulatory scrutiny over its AI strategy.

This settlement underscores Apple’s struggles to deliver on AI promises amid fierce competition. While the company aims to leverage AI for iPhone upgrades and services revenue, the legal fallout may impact its reputation. The deal also raises questions about how firms balance innovation hype with realistic timelines. Investors will watch whether Apple can convert this setback into a stronger AI roadmap, especially with partnerships like Google’s Gemini models. The case serves as a cautionary tale about overpromising in fast-evolving tech sectors.