Written By Divya
Published By: Divya | Published: May 06, 2026, 07:02 PM (IST)
Apple Faces Settlement Over AI Features Promised With iPhone 16 Series (Image: AI Generated)
If you are an iPhone 16 or iPhone 15 Pro series user, then this might bring a smile to you as Apple has reportedly agreed to pay a $250 million in a settlement. As per a report by The New York Times, Apple is said to pay over the claim that it misled the iPhone buyers about the AI features of the iPhone 16 series and iPhone 15 Pro lineup. Also Read: Viral AI image trends are fueling ChatGPT, Google Gemini growth like never before
The case revolves around Apple’s “Apple Intelligence” rollout, which was introduced during WWDC 2024 and heavily promoted alongside the iPhone 16 series launch. According to the lawsuits, Apple promised advanced AI features, especially around Siri, via advertising. However, most of these features came much later or are still unavailable. Also Read: 7 best iPhone deals to check during upcoming Amazon and Flipkart sale
However, it must be noted that the tech giant has not admitted any wrongdoing, but it has reportedly agreed to settle the case to avoid continuing any legal proceedings.
As per the court filings seen by The New York Times, the settlement applies to users in the US only, who purchased any of these devices between June 2024 and March 2025:
The report suggests that eligible users may receive compensation ranging from around $25 (around Rs 2300) to $95 (approx. Rs 9000), depending on the final approval and claims process. However, Apple hasn’t issued any official statement yet.
One of the main issues is that iPhone users and lawyers argued that Apple’s marketing around AI-powered Siri and Apple Intelligence features. During the launch and even the promotional campaigns, the company highlighted AI as a major upgrade for the new iPhones. However, many of those features either rolled out slowly, arrived in limited form, or remain delayed. And we all know, even the basic AI eraser tool doesn’t deliver the required results properly.
The lawsuits claimed that Apple promoted capabilities that were not fully ready at launch. According to the complaint, buyers expected a more advanced AI-powered Siri experience on day one, but that did not happen.
Apple reportedly said that the case mainly focused on the availability of “two additional features” connected to the Apple Intelligence rollout, the report added. The company added that it chose to settle the matter to stay focused on building products and services.
At the same time, Apple has continued expanding its AI partnerships and ecosystem. Its latest iPhones currently rely on integrations with systems like OpenAI’s ChatGPT for certain advanced AI requests. The company has also announced broader AI collaborations going forward.
The case also highlights the growing pressure on major tech brands to quickly introduce AI tools and features. Over the last two years, companies have been racing to add AI into smartphones, search engines, productivity apps, and voice assistants. For Apple, expectations were especially high because the company entered the AI conversation later than some competitors.
The settlement still requires approval from a US district court judge. If approved, affected iPhone users in the US will likely be able to submit claims for compensation. For now, the situation is less about faulty hardware and more about whether companies should market AI features before they are fully ready for consumers.