Apple has agreed to a $250 million settlement to resolve claims it misled consumers about artificial intelligence features tied to its latest iPhones, according to a federal court filing.

The proposed deal, filed in the U.S. District Court for the Northern District of California, would create a non-reversionary settlement fund to compensate customers who purchased certain iPhone models marketed with enhanced Siri capabilities that were not available at launch.

If approved, eligible users could receive a minimum of $25 per device, with payments potentially rising as high as $95 depending on the number of claims submitted.

The settlement covers an estimated 37 million devices sold in the U.S. between June 10, 2024, and March 29, 2025, including all iPhone 16 models as well as the iPhone 15 Pro and Pro Max.

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The settlement covers an estimated 37 million devices sold in the U.S. between June 10, 2024, and March 29, 2025. (Matt Cardy/Getty Images)

The lawsuit alleged Apple promoted a suite of “Apple Intelligence” features – including major upgrades to its Siri virtual assistant – that were not available when the devices went on sale. Plaintiffs said the company “showcased” advanced Siri capabilities in marketing campaigns even though the features “did not yet exist.”

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“Apple allegedly saturated the market with deceptive ads, inducing consumers to purchase iPhones based on the promise of certain Enhanced Siri features,” the filing states. “It further alleged that public reaction was swift and intense when consumers learned that the Enhanced Siri features would be released later than initially anticipated.”

The lawsuit alleged Apple promoted a suite of “Apple Intelligence” features that were not available when the devices went on sale. (Apple)

Consumers argued they were effectively charged a premium for capabilities that were delayed, saying they would not have purchased the devices – or would have paid less – had they known the features would not be available at launch.

Court filings show plaintiffs estimated potential damages at more than $2 billion based on the alleged price premium tied to the promised features, though the settlement represents a fraction of that amount. 

Apple has denied wrongdoing but agreed to settle to avoid the uncertainty and expense of prolonged litigation.

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In a statement to FOX Business, Apple said it has rolled out “dozens” of AI features across its platforms.

“Since the launch of Apple Intelligence, we have introduced dozens of features across many languages that are integrated across Apple’s platforms, relevant to what users do every day, and built with privacy protections at every step. These include Visual Intelligence, Live Translation, Writing Tools, Genmoji, Clean Up and many more,” Apple said.

Apple has denied wrongdoing. (Drew Angerer/Getty Images)

The case underscores growing legal risks for tech companies racing to roll out artificial intelligence tools, as firms compete to attract customers with increasingly sophisticated features. Apple has faced pressure from rivals, including Google and Samsung, which have moved aggressively to integrate AI into their devices.

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To receive compensation, users will need to submit claims confirming they purchased an eligible device and expected to receive the enhanced Siri features that were not delivered at the time. The proposed settlement still requires court approval, with a hearing on preliminary approval scheduled for June.

With years of history, including emails and text messages that have been made part of the case between Zilis, Altman, Brockman, and Musk, lawyers for OpenAI seized on several examples of discussions around changing the corporate structure of the AI company.

Adobe has garnered a strong global reputation as a force for innovation across many different tech and design disciplines. From being recognised for producing some of the most high-performance design tools for businesses to pioneering the PDF file format and establishing Acrobat as the industry’s gold standard in PDF editing, the influence and impact that Adobe has had in the information age has been immense.

That influence only seems to be continuing through to the digital age and the era of AI, as Adobe continues to make strides with its suite of Firefly generative AI tools. Encompassing some of the most commonly sought after generative AI offerings including a text to image generator and even an AI-powered video translator, Adobe Firefly is delivering versatile outputs all within Adobe’s familiar UI.

All of this detail is positioning Adobe in being a leading provider of generative AI tools, and perhaps even developing Firefly to the point where much like Acrobat, it becomes a gold standard in generative AI software.

But of course, quality AI tools aren’t just defined by their UI – they’re defined by their reliability and quality assurance. From Adobe to Anthropic and Open AI, issues like AI hallucinations continue to be a foremost concern – so what is Adobe doing in combating these risks and ensuring Firefly is safe for commercial applications? Let’s get into it by taking a closer look at what’s powering Adobe Firefly’s ethical AI tools.

What is ‘commercially safe AI’? – Defining AI ethics

Let’s start with a definition of ‘commercially safe’ AI. According to Adobe, their models for ensuring commercial safety for final Firefly outputs includes:

• Never training Firefly LLMs on customer content or unvetted open web data
• Limiting asset harvesting to internally managed Adobe Stock libraries as well as public domain data to fight copyright risks

This approach works to ensure that Firefly’s output isn’t only of a consistent quality, but also is safe from infringement on copyright or intellectual property rights. This means that Adobe Firefly users retain full ownership rights over any assets they generate using Firefly tools.

For enterprise users and SMBs, the reassurance of full ownership rights over AI-generated assets, naturally means integrating AI tools like Firefly into creative workflows automatically becomes safer and more commercially viable. So it can be argued that commercial safety in AI ties hand-in-hand with copyright sensitivities.

What is AI ethics?

AI ethics outline theories and practices for the responsible use of AI tools across creative, commercial, and even public sector applications (i.e. using AI for legislative purposes). Some key factors in AI ethics frameworks include:

• Accurate, unbiased, and culturally sensitive AI outputs
• AI authorship and transparency
• Accountability for AI outputs (i.e. responsibilities of creators and developers)
• Social and environmental impact management

Engaging with AI ethics framework is essential for implementing AI governance policies both across the public and private sector. In enterprise environments, maintaining robust AI policies is becoming integral to risk management processes. Across the public sector, the race for implementing AI legislation for citizens and AI regulations for developers and tech sector enterprises is happening all around us.

There is a genuine economic advantage to staying ahead in the global race for AI readiness, and whilst Australia could be performing stronger when compared to the US, China, and India, our tech sector is still well-positioned to innovate in the sphere of AI governance and make our own contributions in the foundational realm of AI ethics. In this regard, partnerships with enterprise innovators like Adobe can help policymakers just as much as it can help corporations and entrepreneurs get ahead in their markets.

Key components in Adobe’s ethical AI strategy

So what exactly is Adobe doing that’s so groundbreaking and worth paying attention to? In truth, Adobe’s approach to AI ethics investments operates at a whole systems level. From the most preliminary stages of AI feature development to real global investments in AI governance initiatives, Adobe is rapidly branding themselves as a leading voice in commercially safe AI.

Here’s a closer look into the strategy they’re using to get there.

Copyright safety = commercial safety

As Firefly is never trained on private user data nor on any privately owned IP, Firefly users retain full ownership rights over all the outputs they generate using Adobe’s suite of tools. This means that brands using Adobe Firefly Foundry can generate asset libraries that are 100% owned by their business and ready to use across everything from annual reports to social media ads.

This is trickier to achieve for a lot of Firefly’s major competitors in the generative AI space, namely because it’s harder for other developers to train their LLMs on privately managed data. For Adobe, however, their asset catalogue is huge, thanks in part to the Adobe Stock library. Other generative AI developers may find themselves filling in gaps in their own asset catalogue by relying on public domain data, or even turning to open web data – and this is where copyright infringement and quality control risks come into play, as assets derived from the open web are unlikely to be consistently accurate nor unbiased.

Content Credentials for AI transparency

Adobe is also investing heavily into metadata for tracking assets generated by Firefly. This is in direct response to growing concerns from AI regulatory bodies worldwide about rampant AI use turning the entire internet into an ‘AI slop factory’.

Commentary online is skewing more towards skeptical and distrustful, even across reputable publishers like local news outlets. And whilst it’s true that older generations are struggling with building AI literacy, these AI skills aren’t as easy and organic for digital natives to develop either.

The solution is clear: ensuring all AI-generated content is readily identifiable. This is where Adobe’s Content Credentials come into play.

Operating like a labelling method for assets generated using Firefly or integrated Firefly features across the wider Adobe Creative Cloud suite, Content Credentials act similarly to traditional metadata, in that they can be used to record when content was created. Adobe takes metadata a step further, however, by also using Content Credentials to signal that that content has been AI-generated, and reference which tool or platform was used to generate that content as well.

Content Credentials are a groundbreaking innovation in the realm of AI transparency, ensuring that Adobe-generated assets will be used responsibly and that creators will maintain accountability on the responsible use of their own AI outputs.

Founding of the Content Authenticity Initiative (CAI)

At a governance level, Adobe has also done a great service for policymakers and NGOs working in the AI regulatory space by founding the Content Authenticity Initiative (CAI). A collective comprising over 3300 members that include global tech corporations, media entities, universities and colleges, NGOs, and government agencies from all over the world, the CAI is committed to spearheading AI policy development and facilitating the sustainable adoption of AI tools into the systems we live by.

The CAI partners with enterprises as well as government agencies and other AI regulatory bodies like the Coalition for Content Provenance and Authenticity (C2PA) to ensure AI ethics frameworks are being considered in the foundation of AI industry regulations. As national and international AI regulations are foundational to long-term AI integration, the work being pioneered by the CAI and the C2PA is helping build a more sustainable AI-first future.

Impact assessment procedures for all AI features

Speaking of sustainability, there have been many anti-AI voices in the media in recent years, and they’re not all averse to AI tech for the same reasons. Safe water access and energy consumption continues to be major talking points in the anti-AI space, but thought leaders like Bill Gates touch on additional points of concern, like the risk factors of AI in bioterrorism or in contributing to global conflicts (i.e. via economic pressures due to job market influences, perpetuating harmful biases and stereotypes, etc.).

For Adobe, social and environmental impact reporting is fundamental to quality assurance across Firefly’s ethical AI tools. So before rolling out any new Firefly features, Adobe engages in thorough ethics impact assessments managed by a dedicated internal ethics review board. The board is designed for diversity, ensuring any potential risks across demographics and markets is caught well before the feature is launched for public use.

User feedback and other third-party review processes

Alongside these developmental review processes prior to feature launch, Adobe also maintains customer feedback mechanics across the entire suite of Creative Cloud tools, ensuring that Firefly features both within the Firefly platform as well as across integrated platforms maintain access to diagnostics reporting and feedback channels.

Adobe moderators are online at all hours globally to manage alerts for any potential AI ethics issues reported by Firefly users. These human resources aren’t just deployed for brand management either, but for upholding the ethical AI values that are integral to Adobe’s operations today, both across R&D as well as through the CAI and other ethical partnerships and initiatives.

Is Adobe a global leader in AI innovation?

Adobe’s genuine, multifaceted commitment to ethical AI innovation is making the tech giant a vital asset in the pathway to AI policymaking. For enterprise Adobe users, the investment in Firefly’s guaranteed ‘commercially safe’ AI also positions Adobe as a safer investment in AI transformation and business growth strategies.

Is Adobe a perfect AI innovator in their own right? Not at all, but AI development is proving to be just as iterative a process as typing an art prompt into an LLM. And the faster we can arrive at the right iteration for AI ethics and policies, the better off we’ll all be as a digital global society.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Tomorrow is May Day, and somewhere in the middle of the country, a married couple in their early forties is opening up a small bakery for the third Friday in succession on which they have not, between them, drawn a salary.

They started the business in 2022. They re-mortgaged the house. They missed two of their daughter’s school plays last term, including the one where she had a line. They have not, for nineteen months, taken a day off. They are, on the official ONS labour-market classification, “self-employed”, which is to say they are not, technically, considered workers at all.

I would like, on this particular May Day, to suggest that they are.

There is a particular sleight-of-hand in British political language that has, over the last fifty years or so, produced an increasingly narrow definition of the word “worker”. A worker, in current usage, is someone who is paid by an employer in return for doing a job, ideally with a contract, a payslip, and a pension contribution. The “workers’ movement”, in modern parlance, is the political and industrial movement representing exactly that figure. Anyone outside the definition is, by implication, something else, an entrepreneur, an investor, a self-employed person, a small-business owner, a family-firm founder. They get other ministries, other sympathies, other adjectives. They do not, on the whole, get celebrated on May Day.

This is, frankly, ridiculous. The bakery couple work, on the broad numbers, more hours than any of their employees. They take home, on average, less per hour than their employees. They have less holiday, less protection, less pension, less sick pay, less of everything. Their economic risk is total. Their political clout is somewhere between negligible and non-existent. Their public image, in much of British political discourse, is closer to that of the tax-avoiding non-dom than that of the sympathetic NHS porter, which is, when you actually meet either, a perfect inversion of reality.

There are, by the latest ONS estimate, just over 4.3 million self-employed workers in the UK. Of those, around 600,000 run businesses with employees of their own. They collectively contribute approximately £303 billion to UK GDP, which is more than the entire UK financial-services sector. They pay corporation tax, dividend tax, capital gains tax, employer NICs, business rates, VAT, and insurance premium tax. They keep more than three million Britons in PAYE jobs. They are, in any meaningful definition, the productive backbone of the country.

And, for at least the last decade, they have been treated by every successive UK administration with a mixture of mild benign neglect and occasional, almost incidental, cruelty. IR35 was a cruelty. Making Tax Digital is a cruelty. The narrowing of business property relief on inheritance tax has been a cruelty. The withdrawal of various small expenses and reliefs has been a cruelty. None of these things has been done because anyone in Whitehall actively dislikes the small-business owner; it is rather that, in the present political configuration, the small-business owner is too small to matter, too dispersed to organise, and too busy to march. The civil servants drafting the SI get the headline figures right, and the headline figures, individually, are small.

May Day, in its original conception, was a workers’ holiday, but, as anyone with any knowledge of the period will tell you, the “workers” it commemorated were not, exclusively, the wage-labour pay-packet figure of present-day usage. They were the broader productive class: artisans, shopkeepers, mechanics, makers, the journeymen in the literal sense who worked with their own tools to produce something useful. A baker in Walsall, in 2026, getting up at 4am to mix the dough, fits that older definition perfectly. The fact that she has, technically, incorporated herself as a private limited company should not, surely, exclude her from the holiday.

I do not, please understand, wish to undermine the more familiar version of May Day. The march, the bunting, the speeches, the flag, they are part of a recognisable British political tradition that I rather enjoy. I just would like, this year, to make a small modest plea for the inclusion in it of the people whose labour is no less skilled, no less hard-won, no less honest, and considerably less protected, than the labour the day was originally meant to celebrate.

So if you are in the bakery this morning, or the small workshop, or the family-run pub, or the consultancy that lives at the kitchen table, or the farm that has been in your name for thirty years, happy May Day. The country is, despite the available evidence, better off because of you. Take five minutes off, if you can. Drink a coffee. Watch the bunting. And, before you go back to it, remember that whatever the textbook says, and whatever the marching song goes, the work you do is, exactly, work.

Richard Alvin

Richard Alvin is a serial entrepreneur, a former advisor to the UK Government about small business and an Honorary Teaching Fellow on Business at Lancaster University.

A winner of the London Chamber of Commerce Business Person of the year and Freeman of the City of London for his services to business and charity. Richard is also Group MD of Capital Business Media and SME business research company Trends Research, regarded as one of the UK’s leading experts in the SME sector and an active angel investor and advisor to new start companies.

Richard is also the host of Save Our Business the U.S. based business advice television show.