Apple has agreed to pay $250 million to settle a lawsuit from U.S. iPhone buyers who said the company exaggerated the capabilities of its artificial intelligence tools.
The agreement, filed in a California federal court on Tuesday, brings an end to a consolidated class action without Apple admitting any wrongdoing. The case was filed last year by consumers who accused the company of overselling the features tied to Apple Intelligence, including promised improvements to Siri.
People in the United States who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025 may be eligible for payments of between $25 and $95, depending on how many claims are approved.
An Apple spokeswoman said the lawsuit was focused on “the availability of two additional features” in a lineup of many released as part of its Apple Intelligence rollout. She added, “We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users.”
The plaintiffs argued that Apple’s marketing created the impression that major AI capabilities were ready for customers when they were not. In a revised complaint filed last week, lawyers said the company had promoted features that did not exist at the time of sale, are still unavailable, and may not arrive for years, if ever.
“Apple promoted AI capabilities that did not exist at the time, do not exist now, and will not exist for two or more years, if ever, all while marketing them as the breakthrough innovation,” lawyers wrote.
They also said Apple’s push into AI came as the company tried to keep pace with rivals in a fast-moving sector, where firms such as OpenAI and Anthropic have helped set the pace for new consumer technology.
The case is another sign of the scrutiny facing Apple as it tries to position AI as a major part of its next generation of devices and software. It also comes against a backdrop of long-running criticism of chief executive Tim Cook, who has often been accused of being less disruptive than the company’s earlier leadership.
The complaint further claimed that Apple’s messaging suggested Siri would become a far more capable personal assistant, rather than a limited voice interface. Lawyers said that promise never materialised for buyers of the latest iPhones.
“The iPhone 16 was delivered to consumers without “Apple Intelligence,” and Enhanced Siri never came,” the lawyers wrote.