May 9, 2026
A more personalized Siri experience powered by artificial intelligence was promised in tandem with the launch of the iPhone 16. But nearly two years later, many of those features still haven't arrived.
As a result, Apple is set to pay $250 million to settle claims (1) that it misled consumers about its AI capabilities.
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The proposed settlement stems from a class-action lawsuit accusing Apple of promoting Siri features that "did not yet exist" as part of its heavily marketed "Apple Intelligence" rollout in September 2024.
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Plaintiffs argue the company's advertising campaign encouraged consumers to buy newer, more expensive iPhones under the impression that advanced AI tools would be available shortly after launch (2).
Apple Intelligence partially launched as part of the iPhone 16 lineup in September 2024, with some features arriving later, such as writing tools, image generation, and ChatGPT integration. However, major features, like an upgraded Siri, delayed in 2025 (3), have not yet made it onto phones.
At the same time, the tech giant has faced mounting pressure from rivals like Google and Samsung, which are ahead in the AI arms race and aggressively rolled out AI-powered assistants, search tools and image-generation features across their devices.
Apple confirmed the settlement in a statement sent to multiple outlets (4) saying it, "has resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users."
Which iPhone users qualify for payments
The lawsuit covers roughly 37 million eligible devices sold in the U.S. between June 10, 2024 and March 29, 2025 (5). If the settlement is approved by a federal judge, eligible customers could receive between $25 and $95 per device depending on how many claims are filed (6).
The proposed settlement applies to customers who purchased any iPhone 16 model as well as the iPhone 15 Pro and Pro Max models, which also had the capabilities to run Apple Intelligence.
Eligible consumers should expect to receive notice by email or standard mail with instructions on how to submit a claim through a settlement website once the agreement is approved.
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Apple's AI push shows the risks of buying tech based on future promises
Apple's settlement arrives amid a broader AI arms race that has transformed the smartphone industry over the past two years. Tech companies have increasingly invested in AI features, even as some tools remain unfinished or experimental.
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Research firm Counterpoint found in December 2024 that 59% of consumers planned to upgrade to so-called "Gen AI smartphones" within a year, an indication of how heavily AI has become tied to smartphone marketing and upgrade cycles (7).
Consumer interest in Apple's AI tools was especially strong. A Morgan Stanley survey last year found that 42% of respondents said having Apple Intelligence was "extremely" or "very" important for their next iPhone purchase (8).
But for consumers, this class-action settlement could serve as a cautionary tale about buying expensive tech products based on promises alone. Smartphones now routinely cost $1,000 or more, and many companies increasingly market future software capabilities as part of the reason to upgrade.
And as Apple's settlement shows, not every headline feature arrives on schedule — even from the world's biggest tech companies.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
NBC Washington (1); ABC News (2); CNET (3); The Verge (4); Clarkson Law Firm (5),(6); Counterpoint Research (7); MacDailyNews (8)
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Clay Halton is an associate editor at Money.ca, covering a wide range of consumer-focused financial stories. He has over eight years of experience in digital publishing and has written and edited for outlets including PCMag and Investopedia.
