AI washing
Template:Artificial intelligence AI washing is a deceptive marketing tactic that consists of promoting a product or a service by overstating the role of artificial intelligence (AI) integration in it.[1][2] It raises concerns regarding transparency, consumer trust in the AI industry, and compliance with security regulations, potentially hampering legitimate advancements in AI.[3] U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler compared it to greenwashing.[4] AI washing ranges from the use of buzzwords attached to products such as "smart" or "machine-learning," to more blatant cases of companies claiming to have used AI in their products or services, without actually having used AI.
The term "AI washing" was first defined by the AI Now Institute, a research institute based at New York University in 2019.[5] However, the act of AI washing had been used earlier in various campaigns trying to attract customers with "innovative" products or services.
Example
In September 2023, Coca-Cola released a new product called Coca‑Cola® Y3000 Zero Sugar. The company stated that the Y3000 flavor had been "co-created with human and artificial intelligence", yet gave no real explanation of how AI was involved in the process.[6] The company was accused of AI washing due to no proof of AI involvement in the creation of the product. Critics believe that AI was used as a way to grab consumer attention more than it was used in the actual product creation.[7]
Legal responses
Some companies have been accused and/or shuttered of trying to capitalize on this trend by exaggerating the role of AI in their offerings. In March 2024, the SEC imposed the first civil penalties on two companies, Delphia Inc and Global Predictions Inc, for misleading statements about their use of AI.[8][9] And in July 2024, the SEC shutdown and charged the CEO and founder of Joonko, a supposed AI hiring startup, with fraud alleging (amongst other serious charges) that he "engaged in an old school fraud using new school buzzwords like ‘artificial intelligence’ and ‘automation,’”[10]
References
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- ↑ AI washing explained: Everything you need to know. (29 February 2024) Retrieved 5 June 2024 from TechTarget
- ↑ Keep your AI claims in check. (27 February 2023) Federal Trade Commission. Retrieved 5 June 2024 from link
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- ↑ What Is AI Washing?. (2024-10-09) Retrieved 2024-12-01 from quantumzeitgeist.com
- ↑ Coca-Cola® Creations Imagines Year 3000 With New Futuristic Flavor and AI-Powered Experience. Retrieved 2024-12-01 from www.coca-colacompany.com
- ↑ Spotting AI Washing: How Companies Overhype Artificial Intelligence. Bernard Marr. Retrieved 2024-12-01 from Forbes
- ↑ Lua error: bad argument #1 to "get" (not a valid title).
- ↑ Decoding the SEC's First "AI-Washing" Enforcement Actions. (18 April 2024) Retrieved 5 June 2024 from Harvard Law School Forum on Corporate Governance
- ↑ Lua error: bad argument #1 to "get" (not a valid title).
