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.

Q1: What is Artificial Intelligence (AI)?

It is an emerging technology that enables computers and machines to simulate human intelligence and problem-solving capabilities. It involves the development of algorithms and models that enable computers to perform tasks that would typically require human intelligence, such as learning, reasoning, problem-solving, perception, and decision-making.

Source: Hype over reality: How AI washing can dent businesses and delude users