Apple settles AI feature misrepresentation lawsuit for $250 million, U.S. users eligible for compensation

Odaily News Apple has agreed to pay $250 million to settle a class-action lawsuit over misleading consumers about the AI capabilities of its iPhone devices. The lawsuit alleged that Apple exaggerated non-existent AI features when promoting Apple Intelligence in June 2024 and that the iPhone 16 shipped in September of the same year did not include the promised AI features. While Apple denies any wrongdoing, it has agreed to provide compensation ranging from $25 to $95 per device to U.S. consumers who purchased relevant iPhone 15 and iPhone 16 models between June 10, 2024, and March 29, 2025. The settlement covers approximately 36 million phones sold in the United States. Apple has now announced that it will use Google's Gemini to power its AI products, including Siri.