The Growing Number of Tech Companies Getting Cancelled for AI Washing

In 2024, 15 artificial intelligence technology companies were subjected to the organizers of the capabilities of their products, and this number has doubled more than twice than 2023.

What is wrong with marketing artificial intelligence today?

While many are familiar with the phrase “greenery washing”, only last year a new form of noise appeared around artificial intelligence, called “artificial intelligence wash”. According to BBC, the phenomenon of artificial intelligence can be defined as claiming that it uses artificial intelligence when a less complex method is used for computing. They explain that artificial intelligence can also happen when companies exaggerate how to operate artificial intelligence or when the company combines products or capabilities together. For example, when “companies simply assemble Chatbot, Amnesty International on their current non -AII operating program.”

Excessive artificial intelligence claims are in serious condition for other users and stakeholders. Three clear concerns about artificial intelligence come to mind:

• The user pays for something that he does not get
• Users expect an irreplaceable result
• The stakeholders in the company do not know whether they are investing in a job that really innovates with artificial intelligence

Artificial intelligence washing is an increasing issue as technology companies compete for a greater market share. Up to 40 % of the companies that described themselves as AI in 2019 were not of artificial intelligence technology. The pressure to provide advanced technology has become greater than it was five years ago.

What drives washing artificial intelligence?

Experts have some theories about this increasing phenomenon. Douglas Dick, the head of the emerging technology risk of KPMG in the United Kingdom, told BBC that the lack of definition of artificial intelligence and mystery that makes artificial intelligence wash possible.

Experts in Berkeley believe that the speech of organizational culture is responsible for washing artificial intelligence, and includes the basic causes of this phenomenon:

• The lack of technical knowledge in the high leadership
• Click for continuous innovation
• Short -term
• Fear of loss (FOMO)

Artificial IQ is also funded by financing. Investors want to see consistent innovation and the superiority of competitors. Even if the brands do not completely develop artificial intelligence, they can attract the attention of investors using half -baked automation tools to earn additional capital.

Although the global artificial intelligence market reaches approximately $ 250 billion by the end of 2025, it is easy to understand the reason for the entire influence of the vehicle, and the acceleration of startups that yearn for financing to slap the artificial intelligence poster on anything. Unfortunately, the organizers took note.

Amnesty International Technology Companies in charge of washing artificial intelligence

Companies that are used to use artificial intelligence often use computing and advanced automation technologies. Unless the real AI data infrastructure is with machinery algorithms, nerve networks, natural language processing, images, or a form of Gen AI, the company may only put smoke and mirrors with artificial intelligence claims.

One company from AI HR Tech, called JONKO, was closed by SEC due to fraudulent practices.

Learning from Junco

Junco claimed that he could help employers to identify tenants so that employers can benefit from these complexes. The idea was that this would create more diverse candidates to be placed in front of the recruits and have a greater chance to obtain employment. Junco was so successful in marketing artificial intelligence to the extent that EUBANKS wrote about Joonko in his first book, and the company raised $ 27 million in VC financing between 2021 and 2022.

When the Securities and Stock Exchange accused the former CEO of JONKO of fraud in Ai Washing Securities, that was because he falsely represented the number and names of its customers. He claimed that Joonka was sold to global credit cards, travel, luxury brands, forged bank data and purchase requests for investors. The CEO received criminal charges in addition to SEC charges against the company.

Learning from Codeway

In 2023, fees were imposed on the Codeway app for a misleading advertisement on Instagram claiming that artificial intelligence can fix foggy images. The advertisement read “strengthening your image with artificial intelligence”, and when the complainant challenged, the company failed to clarify how its application could repair a fog image on its own without the help of other digital image improvements. The Advertising Standards Authority (ASA) supported the complaint and banned the company from managing this advertisement or any others like it.

Other examples

In the United States, FTC and SEC recently carried out the following implementation procedures:

• Multiple business plans have been stopped after people demanded that artificial intelligence can be used to earn money with online stores
• A claim was made for more than 190,000 for the services of the ineffective robot lawyer
• A company called Rytr LLC falsely claimed that it could create content created from artificial intelligence
• A settlement against Intellivision Technologies for misleading demands about the face recognition of artificial intelligence
• Delphia Inc. And Global Predents Inc.

Emerging regulations

The growth of artificial intelligence technology, artificial intelligence was caught by the attention of organizers all over the world. In the UK, ASA is already a precedent by litigation against advertisements on behalf of artificial intelligence.

In Canada, the organizers target unnecessary claims about artificial intelligence as well as marketing materials that suffer or enhance the technique of artificial intelligence excessively. Canadian securities officials issued the notification of employees on November 7, 2024, which participated in some examples of what it considers to be washing artificial intelligence:

• Amnesty International calls for its source that disrupts their industry through the most advanced and modern artificial intelligence technology
• Amnesty International claims to be the world leader in their artificial intelligence category
• Amnesty International is outperforming its use or importance for the industry

In the United States, there are state regulations, such as mandatory biases in New York City, which operates every Amnesty International technology company that operates there. However, there are no comprehensive federal regulations that restrict the development or use of artificial intelligence. In December 2024, the US congress was considering more than 120 artificial intelligence law. These regulations will cover everything from artificial intelligence to nuclear weapons to copyright, but they depend on voluntary measures instead of strict protocols that may slow technological progress. While these bills are discussed, there is a mixture of American federal laws within specific departments, such as the Federal Aviation Administration that says artificial intelligence in aviation should be reviewed. Likewise, there were executive orders on artificial intelligence inside the White House. These requests were developed to reduce the risk of artificial intelligence and ensure public safety, the content created by AI, protect data privacy, and ensure mandatory safety test and other artificial intelligence guidelines by the Trump administration recently in January 2025. The United States -based artificial intelligence companies that serve international markets still have to adhere to their meals.

Don’t be from AI Poser

With the organizers continuing to impose various types of procedures against guilty from washing artificial intelligence, technology companies must take a flag. Any company that claims to make the real AI technology should be able to support its claims. Their marketing teams should avoid excessive excessive ability of its company’s AI products, as well as results, customers and revenues. Any company that is not sure of its technology or its marketing must review the emerging legislation locally and within the markets they sell. Consumers or companies who are considering buying artificial intelligence must be closely seen to the product before purchasing it. With the absence of 2024 cases of washing of artificial intelligence in the early stages of litigation, the story is still revealing, but there is one certain thing, you do not want your company to be part of it.