[News Terms] False Marketing Wrapped in Advanced Technology, 'AI Washing'

AI washing refers to the act of falsely promoting a company or product as AI-related when, in reality, it has little or no connection to artificial intelligence (AI). It involves exaggerating a product or service as using cutting-edge AI technology to attract consumer attention or cause confusion, as well as overstating the capabilities of AI products to attract investments.

This concept is similar to "green washing," a form of deceptive environmentalism where companies that are not eco-friendly promote themselves as practicing environmentally friendly management.

In recent years, as AI has emerged as a technology leading the future, companies have been easily tempted by AI washing. Marketing a company or product as AI-related can instantly attract public attention and increase sales. Expectations for the growth potential of the AI market also make it easier to secure large-scale investments and quickly boost company stock prices. However, such AI washing significantly undermines the credibility of a company’s products or services and poses a risk to market transparency.

Ultimately, Gary Gensler, Chair of the U.S. Securities and Exchange Commission (SEC), warned companies in December last year not to engage in AI washing. He stated, "Do not make false or exaggerated AI-related advertisements," and pointed out that "just as 'green washing' is targeted by regulators, AI washing should also be avoided." He cautioned against marketing that leads investors to expect guaranteed high returns from AI. Earlier, the U.S. Federal Trade Commission (FTC) also announced it would crack down on exaggerated, false, or manipulated advertisements for AI-based products. Consequently, there are expectations that the SEC will soon conduct a large-scale crackdown on fund products packaged as innovative by leveraging AI in the United States.

This content was produced with the assistance of AI translation services.