Beware of 'AI Washing': Companies exaggerating generative AI claims to dupe customers

Companies like Automators AI are deceiving consumers by falsely claiming to use AI when they actually don't. This "AI washing" scams customers out of money.

Businesses want to appear innovative and avoid falling behind, so they may exaggerate their use of buzzy new tech like generative AI without fully utilizing it.

It's hard to regulate generative AI claims since the tech is ambiguous and not easily audited. The FTC is trying to curb deception with warnings.

Consumers should watch for red flags like slow service and ask vendors technical questions if claims seem dubious.

As the AI market matures, customers may become more discerning, but some will still fall prey to hype and exaggeration around new tech.