What is Artificial Intelligence (AI) washing?

About Artificial Intelligence (AI) washing:

• It is a deceptive promotional practice that exaggerates or outright lies about a product or service’s use of artificial intelligence (AI).
• Objective: To capitalize on people’s interest in AI and make an offering seem to be more cutting-edge than it really is.
  • For example, a company may claim their chatbot is “Powered by the latest AI technology” when in reality, it simply matches keywords with pre-written responses.
• It is a term derived from greenwashing, where companies exaggerate their environmental friendliness to appeal to customers.
• Similarly, businesses that claim to have integrated AI into their products, when they’re actually using less sophisticated technology, can be accused of AI washing.
• It is found that the companies had made false statements to their clients about providing ‘expert AI-driven forecasts’ and using machine learning to manage retail client portfolios.
• Problems
  • AI washing can have concerning impacts for businesses, from overpaying for technology and services to failing to meet operational objectives the AI was expected to help them achieve."
  • Meanwhile, for investors it can make it harder to identify genuinely innovative companies.