Apple Inc. has reached a $250 million settlement to resolve a class action lawsuit that accused the company of deceiving iPhone buyers about the arrival of its next-generation, AI-powered Siri, according to a report in The Financial Times. The lawsuit claimed that Apple misled consumers by advertising the upgraded virtual assistant as a key feature of Apple Intelligence, the company's suite of artificial intelligence tools unveiled at the Worldwide Developers Conference (WWDC) in June 2024. Nearly two years later, the promised Siri update has yet to ship, leaving many early adopters of the iPhone 16 and iPhone 15 Pro feeling misled.
If a federal judge approves the settlement, it will provide financial compensation to a class comprising US buyers of the iPhone 16 lineup and the iPhone 15 Pro. These devices were marketed as being optimized for Apple Intelligence, with Siri's enhanced capabilities highlighted as a marquee feature. However, Apple's proposal does not require the company to admit any fault or liability. The settlement represents one of the largest consumer class action payouts related to delayed software features in recent history.
Background: The Promise of Apple Intelligence
At WWDC 2024, Apple unveiled Apple Intelligence, a broad initiative to inject generative AI into its ecosystem. The centerpiece was a more personalized Siri that could understand the context of on-screen content and perform actions across apps—such as summarizing emails, editing photos, or managing calendar events. The company emphasized that these features would launch alongside the iPhone 16 in the fall of 2024, and many consumers upgraded their devices specifically to access the new assistant.
Yet as months passed, Apple delivered only fragments of its AI vision. Components like text rewriting tools, image generation (Image Playground), and ChatGPT integration rolled out gradually through iOS updates in late 2024 and into 2025. But the core Siri upgrade—one that could deeply integrate with users' personal data and execute complex commands—never materialized. Apple did not publicly acknowledge the delay until March 2025, more than five months after the iPhone 16 hit store shelves and over a year after the initial announcement.
The Lawsuit and Its Allegations
The class action lawsuit, filed in the United States District Court for the Northern District of California, accused Apple of engaging in deceptive advertising and unfair business practices. Plaintiffs argued that Apple knew or should have known that the enhanced Siri would not be ready for the iPhone 16 launch but continued to promote it as a selling point. The complaint highlighted ads aired during the lead-up to the iPhone release that demonstrated Siri providing contextual assistance—features that did not exist in the shipping product.
Once Apple finally disclosed the delay in early 2025, it quietly pulled those advertisements. The move was seen by critics as an admission that the marketing was misleading. The lawsuit sought damages for all US purchasers who bought an iPhone 16 or iPhone 15 Pro based on the expectation of receiving the AI-powered Siri. The $250 million settlement, if approved, will be distributed among class members after legal fees and administration costs.
Apple's Partnership with Google
To finally bring the new Siri to market, Apple has turned to a surprising partner: Google. According to internal reports, Apple will leverage Google's Gemini models to power the assistant's advanced capabilities. This partnership marks a departure from Apple's traditional reliance on its own technology and underscores the difficulty the company has faced in catching up with rivals like OpenAI, Google, and Microsoft in the generative AI race. The new Siri—along with a host of other AI features—is expected to debut with iOS 27, which is anticipated in late 2026.
The collaboration with Google has raised eyebrows among privacy advocates, given Apple's long-standing emphasis on on-device processing and data protection. However, Apple has stated that user privacy will remain paramount, with Gemini models running in a secure environment and anonymized data handling. The partnership may also help Apple accelerate future AI updates without the need to build everything from scratch.
Impact on Consumers and the Industry
The delay of Apple Intelligence's core feature has wider implications beyond the lawsuit. It damages Apple's reputation for reliability and innovation, especially as competitors have rolled out robust AI assistants. Google Assistant already offers deep integration across services, while Samsung's Galaxy AI has introduced real-time translation and generative editing. Even Amazon is revamping Alexa with large language models. Apple's stumble with Siri—a product once seen as a pioneer in 2011—highlights the challenges of transitioning to a new AI paradigm while maintaining user trust.
For consumers who bought an iPhone partly based on Siri's promise, the settlement offers limited recourse. Individual payouts from a $250 million fund, after legal fees, may amount to only a few dollars per person. Many class members have expressed frustration that Apple's marketing should have been more transparent, and that the company should have offered refunds or exchanges rather than litigating. The settlement also does not require Apple to change its advertising practices or commit to a timeline for future AI features.
Broader Legal and Regulatory Context
This lawsuit is part of a growing trend where tech companies face legal consequences for overpromising and underdelivering on AI features. Similar actions have been filed against Tesla for its self-driving claims and against Meta for alleged misrepresentations about AI capabilities. Regulators in the US and Europe are increasingly scrutinizing how companies market AI features, with some pushing for mandatory disclosure of feature readiness. The Apple case could set a precedent that companies must be more cautious in their advertising, particularly when selling expensive hardware based on future software updates.
Additionally, the case highlights the tension between hype and reality in the AI industry. Apple, typically secretive about product timelines, may have felt pressure to announce ambitious features to keep pace with rivals. But the gap between announcement and delivery has eroded consumer confidence. As Apple prepares to finally launch its AI-powered Siri, it must rebuild trust—not just with the court-approved settlement, but with a user base that has learned to be skeptical of bold promises.
In the meantime, the settlement provides a measure of accountability, even if Apple admits no wrongdoing. The company continues to face other lawsuits related to Apple Intelligence, including claims that its privacy promises are misleading. For now, the $250 million payout serves as both a financial cost and a reputational warning: in the fast-moving world of AI, delivering on the hype is just as important as creating it.
Source: Engadget News