Apple Faces Criticism for Misleading AI Feature Advertisements

On Tuesday, a non-profit organization focused on "advertising authenticity" criticized Apple for overstating the availability of its AI features in advertisements. The National Advertising Division (NAD) found that Apple's marketing for Siri improvements was misleading, as the advertised features were not yet available to the public.

NAD's investigation was prompted by inquiries into Siri's enhancements. Apple informed NAD that it would permanently discontinue a television advertisement titled "A More Personal Siri," which highlighted significant AI improvements to Siri. The advertisement, which aired in September of last year, promoted features that were not yet released on the iPhone 16. In March, Apple announced that the release of these features would be delayed until the following year.

NAD recommended that Apple avoid conveying the message that features are available when they are not. Apple did not respond to requests for comment, but NAD stated that Apple disagreed with the investigation's findings but would follow the organization's recommendations.

This decision marks the latest setback for Apple's reputation in AI technology and its efforts to promote the AI features of the iPhone 16. Apple is also facing a class-action lawsuit over its AI advertisements. In January, Apple disabled the AI summary feature in its news application after users and the British Broadcasting Corporation discovered that it sometimes distorted headlines to display false information.

In addition to removing a YouTube advertisement starring Bella Ramsey from "The Last of Us" in March, Apple has made other changes to its marketing strategy. The phrase "Apple Intelligence now available" no longer appears on Apple's website; instead, the slogan is "AI for everyone." Apple has also launched a new advertisement highlighting another feature of Apple Intelligence called "Cleanup," which allows users to edit objects or people out of photo backgrounds.

In June, Apple introduced Apple Intelligence, a marketing term for a series of AI features. The company stated that its latest iPhone models would be capable of using image generators, custom emojis, smart notification summaries, and significantly improved Siri.

When the iPhone 16 was released in September of last year, Apple Intelligence was promoted as a key reason to purchase the device through television advertisements, billboards, and the company's website. However, the AI features were gradually released over several months through software updates, despite Apple's continuous promotion of these features.

NAD's decision focused on Apple's promotion of features that were not available to the public at the time of the advertisement's release. The decision stated, "Apple did not adequately disclose that these features were not available, and a reasonable consumer could have believed that these features were available at the time of the initial promotion, but this was not the case."

NAD is part of the BBB National Programs, a non-profit organization that provides projects for various industries to self-regulate. Companies that participate in this voluntary program agree to accept and participate in NAD's evaluation process.

At the end of a decision, NAD typically determines whether specific advertising claims are substantiated. If they are not, NAD will push for changes. NAD Vice Chairman Phyllis Marcus stated that the Apple case was initiated by NAD itself.

Phyllis Marcus, Vice Chairman of the National Advertising Review Board, said, "Apple participated in the evaluation and agreed to consider our decision and recommendations."

Marcus noted that most of NAD's cases are initiated by one company complaining about a competitor's advertisement, but NAD has begun to focus on promotions surrounding AI tools. Apple's decision indicates that regulatory bodies and other oversight organizations will pay more attention to reviewing AI-related promotions.

NAD's report found that some key Apple Intelligence features, such as image generation and integration with ChatGPT, were not available at the time of product launch, despite being advertised as "now available."

NAD stated that Apple's promotions surrounding Apple Intelligence are now accurate. It also noted that Apple has modified its marketing materials regarding Siri's features to adequately convey the status of the delayed features.

Most of the Apple Intelligence features announced in June last year have been released and are enabled by default on new iPhones in the United States.