Business professionals are familiar with greenwashing and social washing as ways corporations manipulate customers — whether intentionally or not — with misleading information. Since the advent of widespread artificial intelligence (AI), AI washing has become a trend. Uncover what this entails and how entities can avoid it to maintain customer loyalty.

What Is AI Washing and Its Impact?

AI washing is when a company deceives its customers by advertising false claims about AI-related activities or products. Enterprises may feel encouraged to participate in these behaviors because AI is associated with thought leadership and competitive advantage. Therefore, stakeholders want to tout as much expertise and innovation as possible.

Many misrepresent their knowledge and experience with AI. Some companies do not use AI meaningfully, while others fail to incorporate it at all. Corporations engaging in these patterns are taking advantage of minimal regulatory oversight. Few agencies hold companies accountable for using AI-related buzzwords as a form of false advertising. As AI washing is normalized, exaggerated and misleading marketing persists throughout websites and social media ads. 

Why Should Businesses Avoid AI Washing?

Today’s consumers want accountability, transparency and sustainability from companies. These ideals cross over into AI-related topics. Many customers see AI phrases and products and become skeptical. 

Organizations tout consumer benefits, such as how AI can personalize shopping experiences. Only 26% of respondents in a survey conducted by Attest believed AI could deliver this benefit. This is a small number, given how many companies are advertising AI assistance.

A damaged reputation is the most significant side effect of AI washing. Negative reviews will likely flood product pages, saying the product failed to live up to the advertised promises. Word travels, eventually attracting the scrutiny of competitors and, potentially, the authorities.

Many companies hype unrealistic expectations of AI and lead consumers to misconstrue the advantages of their products, leading to mass distrust and AI fatigue on the part of the public. These side effects diminish the work of the few corporations advancing AI in productive ways to benefit humanity. The ones making millions off keywords hinder the funding of authentically innovative companies conducting AI-based research and development.

The public’s mixed reception and the downfall of AI washing companies can discourage people from going into the AI field altogether, painting a pessimistic future for prospective talent. Many people struggle to feel inspired and hopeful about job security and technological progress when AI washing has become the standard.

Companies could also feel hesitant to advertise AI use at all, even if it is well-intentioned. Eventually, businesses may not know how to differentiate between ethical AI implementation and exploitative uses of the technology. Corporations will need to spend a lot of time re-educating themselves and revising their professional relationship with AI.

How Can Companies Discourage AI Washing?

Around 26% of people in the U.S. use AI tools every day, meaning there is a growing competency in these subjects. Stakeholders who admonish AI washing will gain the loyalty of their consumers and set a precedent for how to use AI responsibly. Here are several ways to discourage AI washing. 

Seek Validation and Monitor Competitors

A third-party certification carries monumental weight. It demonstrates a corporation is willing to receive external audits to verify its AI’s performance and abilities. Customers can fact-check information based on the validation, expanding their AI literacy and giving them agency over purchasing choices.

Corporations can use the validation process to their advantage. They can see what competitors claim about their products and research how they came to these conclusions. Were they third-party tested, or was the website copy determined by the marketing team?

Encourage Whistleblowing

Organizations can create a productive culture around AI by incentivizing employees to combat misinformation. Make reporting confidential and safe. Otherwise, staff will hesitate to report AI washing they see within the company’s walls. It is important to involve the whole company in identifying unethical practices to establish a mindset of continuous improvement.

Be Honest About AI’s Value

Training sets the limits on what knowledge generative AI possesses. Corporations should avoid saying an AI is up to date or can provide personalized information for all customers if the dataset has gaps. 

Communicate to customers the challenges and limitations of AI products. These explanations should be clear and accessible. Highlighting the real-world value of AI’s true potential will reduce negative feedback from consumers and help buyers make informed decisions. 

A recent case explored an app advertised on Instagram. The product ad stated, “Enhance your Photos with AI.” The phrasing is inherently obtuse, failing to tell customers how they will benefit from the app’s supposed AI capabilities. Authorities determined the app was misleading and barred it from appearing again in that form on social media.

Be an Educational Source

Internal and external education dispels AI washing. Businesses can train everyone on how to discuss AI topics and products, ensuring consistency in branding. 

Communicating with customers and clients is also vital. An aspect of fair AI advertising is publicizing clear guidelines that show how the business uses and talks about the technology. This practice allows everyone to cross-reference these commitments with a company’s claims about AI.

Corporations should also participate in industry efforts to develop more robust standards nationally and worldwide. AI is still young, and responsible AI marketing is crucial to achieve sooner rather than later.

Salvaging AI’s Reputation

AI has the potential to help humanity, but this can only happen if involved parties monitor its public image. Companies and individuals in business leadership must advocate for standardization and oversight over AI language. Outlining ethical incorporation into products and advertising is essential. It is the only way to develop realistic expectations of these advancements so society can get the most out of them.