Apple to pay $250 million over unfulfilled AI Siri promises

Apple is paying $250 million to users over unfulfilled promises about Siri's AI features. The settlement covers delays to features the company announced at WWDC but did not deliver on time. The lawsuit brought together users who bought devices expecting an improved assistant.

AI-processed from TechCrunch; edited by Hamidun News
Apple to pay $250 million over unfulfilled AI Siri promises
Source: TechCrunch. Collage: Hamidun News.
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Primary sourceTechCrunch ↗
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Key metric #1Lawsuits against companies for advertising with overstated AI capabilities
Key metric #2Tighter regulatory requirements for marketing AI features
Key metric #3Growing user frustration with delays in delivering promised features

Apple has agreed to pay $250 million to settle a class action filed by users over delays to the AI features promised for its Siri voice assistant.

What happened with Siri

Over the past five years, Apple has regularly announced new AI capabilities for Siri. At WWDC 2021, the company described upcoming machine learning integration that would make Siri smarter and more useful. Every year brought new promises: understanding of context, deep integration with Apple Intelligence, integration with cloud services.

But months and years passed between announcement and actual release. Users who bought an iPhone, iPad or MacBook expecting an improved Siri found that the assistant remained relatively limited and did not receive most of the promised capabilities. Siri still often fails to understand context, requires precise commands and trails competitors such as Google Assistant and Amazon Alexa.

What the lawsuit alleges

The class action covered users who bought Apple devices between the announcement of the promised features and the failure to deliver them. The plaintiffs argued that Apple deliberately misled them about when Siri's AI features would be available and what they could actually do.

The complaint said that users, relying on the company's marketing messages, chose Apple devices expecting an innovative voice assistant, but instead got a product with limited functionality.

The litigation lasted several years. Apple has now agreed to resolve the case with a $250 million payment as compensation to affected users.

Context and significance of the payment

$250 million is a large sum for an individual, but for Apple, with annual revenue above $400 billion, it is roughly 0.06% of yearly revenue. The symbolic weight of the payment matters far more, though. It signals to the market that even the most powerful technology companies are now held accountable to consumers for failing to deliver on promises.

The payment also reflects a growing trend of lawsuits against tech companies over inflated claims about AI capabilities:

  • Lawsuits against companies for advertising with overstated AI capabilities
  • Tighter regulatory requirements for marketing AI features
  • Growing user frustration with delays in delivering promised features
  • Pressure on companies to give more realistic release timelines

What this means

Apple and other tech giants now know that unfulfilled promises can be costly, both financially and for their reputation. In the future, companies will have to be more careful when announcing AI features and more honest about real development timelines.

That is good news for consumers, who will not be misled by inflated promises.

Story

Key Questions Answered

What happened with Siri?

Over the past five years, Apple has regularly announced new AI capabilities for Siri. At WWDC 2021, the company described upcoming machine learning integration that would make Siri smarter and more useful. Every year brought new promises: understanding of context, deep integration with Apple Intelligence, integration with cloud services. But months and years passed between announcement and actual release. Users who bought an iPhone, iPad or MacBook expecting an improved Siri found that the assistant remained relatively limited and did not receive most of the promised capabi

What the lawsuit alleges?

The class action covered users who bought Apple devices between the announcement of the promised features and the failure to deliver them. The plaintiffs argued that Apple deliberately misled them about when Siri's AI features would be available and what they could actually do. The complaint said that users, relying on the company's marketing messages, chose Apple devices expecting an innovative voice assistant, but instead got a product with limited functionality. The litigation lasted several years. Apple has now agreed to resolve the case with a $250 million payment as c

What are the key details on Context and significance of the payment?

$250 million is a large sum for an individual, but for Apple, with annual revenue above $400 billion, it is roughly 0.06% of yearly revenue. The symbolic weight of the payment matters far more, though. It signals to the market that even the most powerful technology companies are now held accountable to consumers for failing to deliver on promises. The payment also reflects a growing trend of lawsuits against tech companies over inflated claims about AI capabilities: Lawsuits against companies for advertising with overstated AI capabilities Tighter regulatory requirements fo

ZK
Zhemal Khamidun — CPO at Alpina Digital, product manager of AlpinaGPT. Building AI products since 2019. Hamidun News is a pet project that grew into a production aggregator with 6,000+ readers.
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