What is 'AI washing' and why is it a problem?

AI washing refers to the practice of companies exaggerating or misrepresenting their use of artificial intelligence (AI) in their products or services. This phenomenon has been compared to "green washing" in environmental contexts. Companies may overstate the capabilities of their AI systems, claim to use AI when they are not, or attach AI chatbots to non-AI software. The issue has been growing, with a significant increase in tech start-ups mentioning AI in their pitches. This trend has raised concerns about misleading consumers, investors, and regulators. The lack of a clear definition of AI contributes to the problem, allowing for ambiguity in claims. Regulators in the US have started taking action against firms making false statements about their AI use. In the UK, rules and laws are already in place to address AI washing, such as the Advertising Standards Authority's code of conduct. Experts suggest that as AI becomes more ubiquitous, the novelty of being "AI-powered" may diminish as a marketing differentiator. Critics also highlight the environmental impact of AI and stress the importance of considering the practical benefits of AI implementation.