AI Washing
Date of Addition
17 Oct 2025
A deceptive marketing practice where companies exaggerate, misrepresent, or falsely claim artificial intelligence capabilities in their products and services to mislead investors, consumers, and stakeholders about technological sophistication. The phenomenon parallels greenwashing in environmental claims and has attracted regulatory scrutiny from agencies like the SEC and FTC for fraudulent misrepresentation. AI washing creates market distortions by inflating valuations, undermining legitimate AI innovation, and eroding public trust through the proliferation of products labeled as "AI-powered" despite lacking meaningful machine learning functionality.
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