However, one area that hasn't received the needed focus is deceptive AI-related claims by companies—what is called AI washing.
AI washing may be defined as misrepresentation or exaggeration of AI/machine learning (ML) application in goods and services. This has varying consequences, ranging from consumers paying hefty premiums for products and services not delivering promised AI benefits to businesses inviting reputational and legal damage and loss of trust in the credibility of the technology. There is an emergent need for policymakers to address its severity. This is crucial given limited layperson understanding of the technology amid the rise in the demand for goods and services deploying such technologies.
Globally, cases have been identified where companies have misrepresented the use of basic statistical models, traditional software or unprogrammed algorithms as AI. For instance, an entity named DoNotPay was recently penalized for making lofty claims pertaining to creating the world's first robot lawyer. Similarly, Ecommerce Empire Builders (EBB) was charged for making false claims of enabling people to build an AI-powered e-commerce empire by participating in its training programs.
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