What is AI Washing and Why is it a Concern?

A new term has emerged, capturing the attention of industry insiders and regulators alike: AI washing. This term has been coined to describe the misleading practice of overemphasizing AI capabilities in products or services, often resulting in consumers believing that the product being paid for uses AI-powered technology. And as investments continue to pour into the AI field, AI washing is becoming a growing concern among stakeholders. This concept echoes the earlier term “greenwashing,” where companies overstated their environmental efforts.

There are several major issues with AI washing that can cause the practice to bring harm to the marketplace. First, it can mislead consumers and investors. Both parties can fall victim to AI washing and find themselves paying or investing in services that are highly overvalued due to buzzwords and misleading statements. Another issue is that AI washing can harm public trust, resulting in the overshadowing of genuine AI advancements. Finally, it can create a cluttered marketplace where true innovation struggles to stand out against the tide of false claims.

So let’s explore a few examples of AI washing.

Misleading Product Descriptions

Some companies have been criticized for labeling products as “AI-powered” with minimal or superficial AI integration, essentially using AI as a marketing buzzword rather than a factual product feature. About two months ago, Global Predictions, a San Francisco-based firm that offers investment advisory services claimed that it used AI to help drive forecasts. The reality was the firm was unable to produce documentation of such claims and found itself on the wrong side of the SEC.

Overstated Capabilities

There are instances abound where firms tout their solutions as utilizing advanced AI algorithms, when, in fact, they rely on simpler, less sophisticated technology. One of the most recent examples of this is the Just Walk Out program touted by Amazon. It was revealed weeks ago that instead of being an AI-based checkout-free system, it was in reality 1,000 people in India running the system in real time. Though Amazon disputed the claim, stating that only a fraction of services required human intervention, the damage was done as the service first touted in the Amazon Go convenience stores seemed to be at odds with reports by multiple news outlets.

Investment Hype

Startups and established companies alike might claim AI integration to attract funding, even when their use of AI is negligible or in the early developmental stages. This has become such a problem in the field of AI and venture capital that the U.S. Justice Department had to step in and begin warning players within the industry to not mislead investors or potential consumers with false claims.

Conclusion:

There are only a few examples of AI washing, but the risk is real. Scammers working in what looks like legitimate companies and black hat actors are trying to ride the AI hype train by making bold claims for products that often don’t meet expectations. It’s becoming more important to understand the fundaments of artificial intelligence and what capabilities the technology can leverage.

Originally posted on OpenDataScience.com

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