Apple’s shareholders are taking the company to court over its lack of progress in artificial intelligence. They claim the company misled them about how quickly it could integrate advanced AI into its virtual assistant, Siri. This delay, they say, hurt iPhone sales and the company’s stock price.
The lawsuit, filed in a federal court in San Francisco, names Apple’s CEO, Tim Cook, and its former financial director, Luca Maestri. The shareholders, led by Eric Tucker, say Apple made them believe AI would be a key feature of the iPhone 16. But when the company announced its new products, the AI features were not as advanced as they expected.
The problem started when Apple introduced its Apple Intelligence project. The shareholders thought this meant the company would make big improvements to Siri using AI. But after the company’s developer conference in June last year, they realized that wasn’t happening. Apple didn’t have a working prototype of the AI-powered Siri features, and it couldn’t reasonably say they would be ready for the iPhone 16.
The truth started to come out on March 7, when Apple delayed some Siri updates until 2026. It became clearer during the company’s developer conference this year, on June 9, when Apple’s assessment of its AI progress disappointed the shareholders. Since its stock price peaked on December 26, 2024, Apple has lost almost a quarter of its value, wiping out about $900 billion in market value.
What’s Going On With Apple’s AI?
The company’s AI efforts have been under scrutiny for a while. Apple has been trying to improve Siri, but it’s facing challenges. The shareholders are not the only ones who are unhappy. Some users are also disappointed with the lack of progress.
Apple’s AI problems are not just about Siri. The company has been trying to integrate AI into its other products, but it’s not moving as fast as some of its competitors. The lawsuit is a sign that the company’s shareholders are getting impatient. They want to see more progress, and they want to see it now.
The case is ongoing, and it’s not clear what the outcome will be. But one thing is certain: Apple needs to step up its AI game if it wants to stay competitive. The company’s future depends on it.
- The lawsuit was filed in a federal court in San Francisco.
- Apple’s CEO, Tim Cook, and its former financial director, Luca Maestri, are named in the lawsuit.
- The shareholders claim Apple misled them about its AI progress.
- Apple’s stock price has lost almost a quarter of its value since its peak on December 26, 2024.