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Apple Faces $250M AI Marketing Settlement While Planning Multi-Model AI Choice for iOS 27

Apple has agreed to pay $250 million to settle a class action lawsuit alleging it misled consumers about the AI capabilities of the iPhone 15 and 16. The complaint claimed Apple exaggerated the readiness and functionality of Apple Intelligence features, particularly an upgraded Siri, influencing purchase decisions with capabilities that were incomplete or delayed. Without admitting wrongdoing, Apple agreed to pay eligible U.S. customers up to $95 per device for purchases made between June 2024 and March 2025.

The settlement arrives as Apple simultaneously signals a more ambitious AI roadmap. According to Bloomberg, iOS 27 will introduce a feature internally called Extensions, allowing users to select from multiple third-party AI models — including those from Google and Anthropic — to power Siri, Writing Tools, and Image Playground. The capability will extend across iPadOS 27 and macOS 27.

The dual developments frame a pivotal moment for incoming CEO John Ternus, who takes over from Tim Cook facing widespread perception that Apple lags behind rivals on AI. Apple’s strategy has focused on embedding AI into existing hardware rather than building standalone infrastructure. A preview of its AI-enhanced Siri is expected at the company’s developer conference on June 8.

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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