AI Washing

GS Paper III

News Excerpt:

Following the release of OpenAI’s ChatGPT in 2022, the world has witnessed an exponential surge in interest surrounding generative AI, this obsessive interest has also given rise to a concerning trend known as "AI washing”.

What is AI Washing?

  • In basic terms, AI washing involves exaggerating the capabilities of a product or service that is sold as ‘AI’ in order to make it look more sophisticated, innovative or intelligent than it actually is.
  • It can be seen as a form of bandwagon jumping. The term itself derives from ‘greenwashing’, which is frequently used to describe projects, products or services that overstate how environmentally-friendly they are, to appeal to eco-conscious consumers.

Why AI Washing is a Growing Concern?

  • AI washing is not merely harmless exaggeration; it can have serious consequences for both consumers and the tech industry.
  • For consumers, subpar AI technology can pose data security and privacy risks.
    • This can deter them from using technology that could otherwise benefit them.
  • Also, Marketers attempting to AI-wash their products and services will often:
    • Overstate their capabilities – implying that their AI models and algorithms are more powerful, useful or flexible than they actually are.
    • Misleadingly use the term ‘intelligent’ – when, in fact, the software doesn’t use algorithms capable of learning and making decisions without being explicitly programmed how to do so.
    • Offer very vague definitions – Not specifically explaining which elements are ‘intelligent’ and which rely on traditional software methodologies or human input
    • Downplay the amount of human input involved – either on the part of the service provider or the user.
    • One way of looking at it is that AI washing is like painting ‘go-faster’ stripes on a car without upgrading the engine, allowing marketers to capitalise on the excitement around AI while not offering anything that’s genuinely revolutionary.

The Extent of AI Washing:

  • A study by an investment fund for new tech firms highlighted a significant rise in startups mentioning AI in their pitches.
    • It rose from 10% in 2022 to over 25% in 2023.
    • Over half of S&P 500 companies referenced AI in their earnings calls last year. 

Examples of AI Washing:

  • The rapid advancement and vast potential of AI have pushed many companies, including tech giants, to roll out AI-based products without fully developed technology. 
    • For instance, Google unveiled its multimodal AI chatbot Gemini with a video demonstrating its ability to recognize pictures.
    • However, it was later revealed that the video was not shot in real-time but created using text prompts and stitched frames.
  • Other multinational brands like McDonald's and Coca-Cola have also faced scrutiny for their AI-related claims.
    • McDonald's abandoned its AI technology at drive-thru restaurants due to customer complaints, while Coca-Cola's AI-generated flavour failed to impress consumers.

Way Forward:

  • To combat AI washing, businesses need to maintain transparency and accuracy in their AI product claims.
  • The US Federal Trade Commission (FTC) recommends that businesses critically evaluate their AI product claims to avoid exaggeration and misrepresentation.
    • The FTC advises companies to ask key questions such as: "Are you exaggerating what your AI product can do? Are you promising that your AI product performs better than a non-AI product? Does the product actually use AI at all?"
  • The Securities and Exchange Board of India (SEBI) cautioned against AI washing in a 2019 circular, emphasising the need for accurate representation of financial benefits claimed by AI technologies.

Conclusion

As the AI landscape continues to evolve, it is crucial for businesses to provide clear and accurate information about their AI capabilities. Avoiding AI washing not only protects consumers but also fosters a more trustworthy and innovative tech ecosystem. 

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