AI-Washing: Are Buyers Being Taken to the Cleaners?

Artificial Intelligence — Wed., Jul. 10, 2024

Artificial Intelligence (AI) is in its hype cycle, with the global market valued at $196 billion and projected to increase 13-fold in the next seven years. Startups mentioning "AI" attract 15-50% more investment, leading to companies capitalizing on the AI hype with misleading claims.

AI-washing is a deceptive marketing strategy involving false or exaggerated claims about AI use. Claims can be made through words, visuals, omissions, or symbolic action. This trend is difficult to detect and can take various forms, including misleading product descriptions and exaggerating AI capabilities.

AI-washing has dangerous consequences, such as customer deception, market distortion, regulatory and legal challenges, and loss of trust in AI technology. To combat AI-washing, transparency and honesty in marketing, education and awareness, regulatory oversight, and industry standards and certifications are crucial.

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