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Watchdog’s ruling pushes Apple to pull Siri AI Ad for misleading customers

In this post:

  • Advertising watchdog NAD ruled that Apple’s “More Personal Siri” TV ad misled viewers by claiming unreleased Apple Intelligence features were “available now.”
  • Regulators said Apple failed to disclose that key tools, such as image generation and enhanced ChatGPT-powered Siri, were still in development.
  • Apple, while disagreeing with the decision, agreed to comply.

Apple faced criticism on Tuesday after the National Advertising Division ruled that several commercials for Apple Intelligence promised features that were not yet available.

According to a CNBC report, the self-regulatory body said the company failed to give “adequate” notice that customers could not use the promoted tools and recommended that future ads avoid that suggestion.

Apple disagreed with the conclusion but told NAD that it would comply. It has permanently withdrawn a 30-second spot titled “More Personal Siri.” First aired in September, the ad featured “The Last of Us” star Bella Ramsey asking the digital assistant to summarise alerts and generate images on the iPhone 16.

Those abilities are scheduled for release later this year, a delay Apple acknowledged in March when it moved the launch to “the coming year.”

“NAD recommended that Apple avoid conveying the message that features are available when they are not,” the decision reads.

When the iPhone 16 debuted on 13 September, Apple ran television, outdoor, and online campaigns presenting Apple Intelligence as a core reason to upgrade. Key functions were on-device image creation and native ChatGPT support.

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NAD wrote that such timing could mislead “reasonable consumers” who believed the features were ready on day one.

The division, a unit of non-profit BBB National Programs, usually hears cases triggered by rival complaints.

Vice-President Phyllis Marcus said this one was opened on NAD’s own initiative. Marcus added that NAD will increase self-initiated reviews in quickly evolving areas such as generative AI.

Apple has now tweaked its AI marketing

Several class-action suits accuse the company of misleading customers with Apple Intelligence promotions. In January, Apple switched off an AI headline-summary feature for news apps after users, including the BBC, found it occasionally produced false or distorted headlines.

Nonetheless, the firm has made changes to other promotional material. The Apple Intelligence web page now carries the banner “AI for the rest of us” instead of “available now,” and a new commercial highlights “Clean Up,” an image-editing tool that is already live.

Following revisions this spring, NAD said Apple’s current marketing “adequately communicates the status” of the postponed Siri upgrade and correctly lists which Apple Intelligence features are active. Most tools unveiled in June are now enabled by default on new U.S. iPhones, the decision reads.

Investors are watching whether Apple Intelligence spurs hardware sales

A Morgan Stanley survey published Tuesday showed that about 80% of U.S. users with a compatible phone had tried an Apple Intelligence feature, and 53% of prospective upgraders called the software “very important” in their decision-making. The same poll found that 52% would pay $10 or more monthly to keep the service.

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Analysts call the rollout a major test for Apple’s ability to blend hardware and AI without overpromising. For now, NAD has closed its review but said it will keep an eye on future campaigns.

Morgan Stanley reported that more than half of the surveyed users would upgrade sooner if Apple Intelligence works as billed, a shift the bank believes could raise iPhone sales.

Apple unveiled Apple Intelligence in June 2024, promising personalized image generators, custom emojis, concise notification summaries, and a more intelligent, context-aware Siri.

NAD says most tools, including Clean Up and writing suggestions, are now on by default in the United States, while the Siri upgrade remains in limited testing.

NAD will issue a compliance update in ninety days. Apple says the suite runs entirely on the device, keeping personal data private while letting the neural engine handle language, images, and everyday tasks quickly offline.

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