Apple to pay $250M settlement over AI claims to iPhone users

Story by  Ashhar Alam | Posted by  Ashhar Alam | Date 06-05-2026
iPhone 16 Pro Max
iPhone 16 Pro Max

 

Ashhar Alam/New Delhi

Apple’s push into AI with its iPhone lineup is now under legal and consumer scrutiny, as the company moves to settle claims over its much-publicised “Apple Intelligence” features. The Cupertino-based tech giant, which introduced the iPhone 16 series in September 2024 as its first devices built around AI-driven tools, is reportedly set to pay $250 million (around ₹2,367 crore) to resolve a class action lawsuit in the United States.

The dispute centres on allegations that Apple overstated the capabilities of its AI ecosystem while rolling it out across the iPhone 16 range and extending support to the iPhone 15 Pro series. Several users had filed lawsuits last year, claiming that promised features were delayed or under delivered.

According to court filings cited by The New York Times, the settlement could see eligible consumers receive up to $95 (approximately ₹9,000) each. Those who purchased iPhone 16, 16 Plus, 16 Pro, 16 Pro Max, as well as iPhone 15 Pro and 15 Pro Max models between June 2024 and March 2025 may qualify for compensation.

The cases, initially filed separately, were later consolidated into a single class action in a California federal court. While Apple has agreed to the terms with the plaintiffs, the settlement is yet to receive final approval from a district judge.

Apple first unveiled its “Apple Intelligence” suite at WWDC 2024, positioning it as a core upgrade for its ecosystem. However, several features, including a more advanced AI-powered version of Siri, have faced delays and are still awaited.

In the meantime, Apple has increasingly leaned on partnerships to bolster its AI capabilities. Its devices currently integrate external tools like OpenAI’s ChatGPT for complex tasks. Earlier this year, the company also announced a multi-year collaboration with Google to incorporate Gemini AI models and cloud infrastructure into its future AI framework.

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The settlement marks a significant moment in Apple’s evolving AI journey, highlighting both the growing expectations from users and the challenges of delivering advanced features at scale.