What Is AI Washing And How It's Influencing Business

The emperor has no clothes, thanks to AI-Washing

Artificial Intelligence

Gather around everyone as we embark on the magical, mystical tour of 2024’s hottest trend, AI-Washing!

Yes, AI-washing is not to be confused with brainwashing, although give it time.

What is AI Washing?

AI-washing is a delightful practice where companies slap the label “AI” on products and services. It doesn’t matter whether their product has more artificial intelligence than Kardashians; if it sounds futuristic, it’s selling!

In her brilliant article, Margaret Rouse explains AI washing as a deceptive promotional practice. She goes on to claim that it is not only an exaggeration but an outright lie. Rouse discusses that AI washing is a means of capitalizing on the craze of the masses to make products seem more attractive than they are.

Similarly, Forbes contributor Bernard Marr believes that while artificial intelligence is immensely transformative, there is a lot of hype and hot air around the technology. He goes on to say that this is something that inevitably occurs with any exciting technology, especially when there’s a lot of money to be made.

The Scale of the Phenomenon

So, how widespread is AI-Washing?

Imagine every time you heard someone casually mention “blockchain” in 2017. Now replace “blockchain” with “AI,” and add a sprinkle of desperation to sound cutting-edge.

Voilà! You’ve got yourself the 2024 corporate landscape. Companies are AI-washing themselves with the enthusiasm of a toddler discovering a mud puddle. For instance, a recent study found that 73% of companies claiming to use “advanced AI” were actually just using Microsoft Excel with fancy cell colors.

Alright, that study doesn’t exist, but you believed it for a second because it sounds exactly like the kind of nonsense we’re dealing with!

Thomson Reuters reports that the US Securities & Exchange Commission (SEC) settled with two investment advisory firms, Global Predictions Inc. and Delphia (USA) Inc., that made misleading marketing statements about their use of AI. Both companies “marketed to their clients and prospective clients that they were using AI in certain ways when, in fact, they were not,” said Gary Gensler, SEC chairman.

Impact on Investment

What’s even more hilarious is how investors react. If a startup pitches an app that uses AI to read the emotions of houseplants, they’re showered with money. Seriously, billions of dollars are being thrown at anything that claims to harness the power of AI, whether it’s revolutionizing your morning toast or predicting the exact moment you’ll give up on your diet.

2024 saw a 500% increase in investment in AI-centric companies. Note that “AI-centric” here means any company that has successfully logged into Chat GPT without assistance.

Consumer Perspective

From a consumer perspective, AI-washing is like buying a mystery box at a tech convention.

You think you’re getting a robot butler but end up with a talking kitchen timer.

Did you know that 84% of consumers can’t differentiate between genuine AI and a raccoon in a server room hitting switches? The raccoon might actually be more effective, particularly in customer service.

Regulatory Comedy

And what about regulation?

Governments are “trying” to regulate AI. They pass laws with big, bold titles like “The Absolutely Comprehensive AI Act of 2024,” which are as comprehensive as my understanding of why we need 15 different streaming services to watch three shows.

AI in Daily Life

Everyday items are now “enhanced” with AI.

Your toothbrush alerts you when you’re brushing too enthusiastically. Your fridge sends passive-aggressive messages about your third slice of cake. It’s all AI, apparently!

A Call to Nonsense

In conclusion, AI-washing is the art of dressing up plain old software in a shiny new AI cloak. It doesn’t matter if the emperor has no clothes; as long as he claims they’re AI-fabricated, everyone oohs and aahs.

So, the next time someone tells you their new product features advanced AI, remember: it might just be a raccoon on a coffee break. Here’s to another year of technological make-believe!

Cheers!