Apple Faces Lawsuit Over Delayed Apple Intelligence Features

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On Fri, 21 Mar, 8:04 AM UTC

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Apple is sued for false advertising of AI capabilities in its iPhone 16, as promised Apple Intelligence features face significant delays. The lawsuit alleges consumer deception and unfair competition.

Apple Faces Legal Challenge Over Delayed AI Features

Apple, the tech giant known for its innovative products, is now embroiled in a legal battle over its much-hyped Apple Intelligence features. A lawsuit filed in the U.S. District Court in San Jose alleges that Apple engaged in false advertising and unfair competition by promoting AI capabilities that have been significantly delayed 1.

The Lawsuit and Its Claims

The class-action lawsuit, filed by Clarkson Law Firm, seeks damages on behalf of consumers who purchased Apple Intelligence-capable devices, particularly the iPhone 16 lineup 2. The plaintiffs argue that Apple's marketing campaign, which began in the summer of 2024, created "a clear and reasonable consumer expectation" that transformative AI features would be available upon the iPhone's release 3.

Key allegations in the lawsuit include:

  1. False advertising of non-existent features
  2. Violation of consumer protection laws
  3. Unfair advantage over competitors
  4. Inducing unnecessary purchases based on promised capabilities

The Promised Features and Delays

Apple Intelligence, introduced at the Worldwide Developer Conference in 2024, was touted as a suite of AI-powered capabilities that would enhance various applications, particularly Siri 3. Some of the promised features included:

  • A more personalized Siri capable of cross-app actions
  • Contextual responses based on on-device information
  • Enhanced natural language processing abilities

However, earlier this month, Apple admitted that these features would be delayed until 2026, significantly later than the initial release date 2.

Apple's Response and Internal Turmoil

In response to the delay, Apple has taken several actions:

  1. Removed advertisements promoting the advanced Siri features from YouTube
  2. Added disclaimers to its website regarding feature availability
  3. Appointed a new team lead for Apple Intelligence 4

Reports suggest internal turmoil at Apple, with CEO Tim Cook allegedly losing confidence in AI head John Giannandrea's ability to deliver on product development 1. Mike Rockwell, previously overseeing the Vision Products Group, has been tapped to take over Siri management 3.

Industry Context and Implications

The lawsuit and delays come at a crucial time for Apple, as it faces increasing pressure in the AI race. Competitors such as Microsoft, Alphabet, Amazon, and Meta have made significant strides in AI development, leaving Apple struggling to keep pace 3.

This situation has led to speculation about systemic issues in Apple's product development process, with analyst Benedict Evans drawing parallels to Microsoft's troubled Windows Vista release 3.

Consumer Impact and Legal Precedent

The plaintiffs argue that Apple's actions have "deceived millions of consumers into purchasing new phones they did not need based on features that do not exist" 2. This case could set an important precedent for how tech companies market AI features and the legal consequences of overpromising capabilities.

As the legal proceedings unfold, the tech industry and consumers alike will be watching closely to see how this impacts future AI product launches and marketing strategies 5.

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