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    15 months ago

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    You then get automatically billed.However, back in April it was widely reported that rather than solely using AI, Just Walk Out needed around 1,000 workers in India to manually check almost three quarters of the transactions., external

    It expects that figure to be more than a third this year.And, says OpenOcean team member Sri Ayangar, competition for funding and the desire to appear on the cutting edge have pushed some such companies to overstate their AI capabilities.

    “Some founders seem to believe that if they don’t mention AI in their pitch, this may put them at a disadvantage, regardless of the role it plays in their solution,” says Mr Ayangar.

    “And from our analysis, a significant disparity exists between companies claiming AI capabilities, and those demonstrating tangible AI-driven results.”

    Earlier this year, the US Securities and Exchange Commission (SEC) said it was charging two investment advisory firms, external with making false and misleading statements about the extent of their use of AI.

    In the UK, rules and laws covering AI washing are already in place, including the Advertising Standards Authority’s (ASA’s) code of conduct, which states that marketing communications must not materially mislead, or be likely to do so.Michael Cordeaux, associate in the regulatory team at UK corporate law firm Walker Morris, says that AI claims have become an increasingly common feature of advertisements subject to ASA investigation.Examples include a paid-for Instagram post about an app captioned “Enhance your Photos with AI”, which was held by the ASA to be exaggerating, external the performance of the app, and was therefore misleading.


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