Apple has been sued for false advertising due to its delayed artificial intelligence (AI) rollout.

As Axios reported, the proposed class action suit, filed last week in federal court, seeks unspecified damages for customers who purchased Apple products outfitted with the company’s AI capabilities, dubbed “Apple Intelligence.”

“Apple’s advertisements saturated the internet, television, and other airwaves to cultivate a clear and reasonable consumer expectation that these transformative features would be available upon the iPhone’s release,” the suit says.

“This drove unprecedented excitement in the market, even for Apple, as the company knew it would, and as part of Apple’s ongoing effort to convince consumers to upgrade at a premium price and to distinguish itself from competitors deemed to be winning the AI-arms race.”

However, the suit adds, Apple’s products featured “a significantly limited or entirely absent version of Apple Intelligence,” thus misleading consumers. The suit also says Apple advertised its products based on “overstated AI capabilities.”

The lawsuit also notes that Apple has pulled a recent ad campaign touting AI capabilities of its Siri voice assistant from YouTube, but has otherwise “failed to retract all the similarly false representations in the market that began in the summer of 2024.”

PYMNTS has contacted Apple for comment but has not yet gotten a reply.

The suit comes at a time when — as noted here last week — Apple is struggling to catch up to competitors such as Amazon and Google as those companies roll out more advanced AI features.

The company has said that improvements to Siri — originally planned to debut this year — had been pushed back until 2026. Amazon, meanwhile, recently announced Alexa+, an updated version of its home voice assistant that embeds generative and agentic AI.

“It is a remarkable fall from grace for Siri that has culminated in a rare move by Apple: demoting the executive in charge,” PYMNTS wrote.

The executive in question is John Giannandrea, ex-head of search and AI at Google, who had been overseeing Siri’s upgrades before. That job now goes to Vision Pro creator Mike Rockwell.

Speaking with PYMNTS earlier this month, Siri co-designer Luc Julia said that an obsession with perfection is likely weighing down efforts to introduce an upgraded Siri.

“They are falling behind because of this fear of not being perfect,” said Julia.

The post Apple’s AI Delays Lead to False Advertising Lawsuit appeared first on PYMNTS.com.

The Neighborhood Council Budget Advocates delivered a letter to Los Angeles elected officials on Tuesday, March 25, urging them to avoid across-the-board cuts without considering their long-term impacts and offered recommendations to address a nearly $1 billion deficit at City Hall in the coming fiscal year.

Glenn Bailey and Jay Handal, co-chairs of the Neighborhood Council Budget Advocates, delivered the group’s annual White Paper, a report on the city’s spending and services, to Mayor Karen Bass and the Los Angeles City Council. They urged the city to evaluate the structure of city departments and to consolidate them if necessary, as well as to consider moving employees back into City Hall or offer work-from-home opportunities to reduce costs with leases.

“This is a pivotal moment in our city’s history,” the letter reads. “It is not a time for politics but for responsible financial stewardship. We must make tough but rational decisions.”

“This is also an opportunity to think about what kind of city we want in 10 years and structure the decisions accordingly,” the letter continued.

The budget advocates also noted that history has shown “indiscriminate reductions” — especially in revenue-generating departments — can result in unintended consequences. They warned against slashing critical administrative functions such as personnel, which could leave the city struggling to recover once economic conditions improve.

In the letter, the budget advocates provided the following recommendations:

— Update the four-year General Fund budget outlook to reflect anticipated raises for city employees;

— Develop a two-year budget;

— Conduct open and transparent labor negotiations that require significant outreach to Angelenos before, during and after the negotiations;

— Place a ballot measure that would prohibit the city from entering into any labor agreement that would create a current or future deficit, which in the short term could be implemented via an ordinance;

— Develop a long-term infrastructure plan;

— Create robust reserve fund that can only be used in declared emergencies and not to balance the budget (a current practice); and

— Establish an Office of Transparency and Accountability to oversee the city’s budget and finances in real time.

In its 116-page report, the budget advocates also provide a department-by-department list of potential cost-saving measures, which can be viewed at budgetadvocates.org/white-papers.

Under a system established in 1999, members of Neighborhood Councils are volunteers elected by residents of their respective communities. The councils advocate on issues such as homelessness, housing, land use and public safety.