News in brief

Thursday 7 May 2026

Apple agrees to pay iPhone buyers $250m to settle AI lawsuit

This article appeared as part of the Daily Sensemaker newsletter – one story a day to make sense of the world. To receive it in your inbox, featuring content exclusive to the newsletter, sign up for free here.

Apple has agreed to pay iPhone buyers $250m over claims that it misled buyers on the AI capabilities of Siri. The settlement includes no admission of wrongdoing and will give up to $95 to people in the US who bought an iPhone 15 or iPhone 16 between June 2024 and March 2025. Apple was accused of false advertising by promoting new features, which lawyers claimed “did not exist at the time, do not exist now, and will not exist for two or more years, if ever”. Apple has lagged its competitors in artificial intelligence, announcing a new version of Siri in 2024 only to be delayed in its attempts to furnish it with advanced AI capabilities. A complete rollout is expected in September with the launch of iOS 27. Users will reportedly be able to select from third-party models to get the most out of its AI features.

Newsletters

Choose the newsletters you want to receive

View more

For information about how The Observer protects your data, read our Privacy Policy

Follow

The Observer
The Observer Magazine
The ObserverNew Review
The Observer Food Monthly
Copyright © 2025 Tortoise MediaPrivacy PolicyTerms & Conditions