Lawsuit filed against Apple for 'misleading' Apple Intelligence claims: Report

Apple is facing a class-action lawsuit in the United States over alleged false advertising related to its Apple Intelligence features, according to a report by TechCrunch. The lawsuit, filed in the US District Court in San Jose, claims that Apple misled consumers by marketing its AI capabilities under the tagline "Built for Apple Intelligence," leading them to believe that these features would be available at launch.

The plaintiffs argue that Apple’s promotional materials created "clear and reasonable consumer expectations" that Apple Intelligence would be functional from the moment customers purchased their devices. However, the lawsuit states that these AI-powered features were either significantly limited or entirely absent upon release, making Apple’s claims deceptive.

"Contrary to Defendant’s claims of advanced AI capabilities, the Products offered a significantly limited or entirely absent version of Apple Intelligence, misleading consumers about its actual utility and performance. Worse yet, Defendant promoted its Products based on these overstated AI capabilities, leading consumers to believe they were purchasing a device with features that did not exist or were materially misrepresented," stated the lawsuit.

The suit seeks class-action status and damages for consumers who purchased Apple Intelligence-capable iPhones and other Apple devices based on these claims.

Delays and Leadership Changes

Apple Intelligence was not available at the launch of the iPhone 16 series, and its rollout only began with the iOS 18.1 update in October. Even now, these features remain limited to select regions, with Apple planning to expand availability, including in India, starting next month. Additionally, it was recently reported that the AI-powered version of Siri, initially expected to launch with the iOS 18.4 update in April, has now been delayed to "the coming year." Internal testing has reportedly revealed persistent bugs, leading Apple to consider a complete rebuild of Siri’s AI system, potentially pushing the release to 2026.

In response to these setbacks, Apple has reportedly made leadership changes within its AI division. According to Bloomberg’s Mark Gurman, Apple has reassigned Siri’s development leadership from John Giannandrea, the company’s Senior Vice President of AI, to Mike Rockwell, the head of the Vision Pro team. Rockwell’s hardware engineering lead, Paul Meade, will now take over the Vision Products Group and report to Apple’s hardware chief, John Ternus.

The report further states that Apple CEO Tim Cook has lost confidence in Giannandrea’s ability to execute on product development, prompting the restructuring. Gurman noted that these leadership changes had been in the works for several months and were planned even before Apple officially acknowledged delays in Siri’s AI upgrades.

The lawsuit and the internal reshuffling mark a turbulent phase for Apple as it navigates challenges in delivering on its AI promises. The outcome of the lawsuit could have significant implications for the company’s AI strategy and consumer trust moving forward.