Assessing AI claims vs realities.
For many organizations, the promise of simplifying and streamlining workflows for you and your team is very tempting. Too much work and not enough time to get it done is a common refrain we hear from many clients we work with. Enter what many think is the ultimate solution: Artificial Intelligence (AI).
It seems like AI is everywhere now – integrated into websites as chatbots, embedded in content creation software as a helpful assistant, or even doing all the work for you from a well-written prompt on Gemini or Midjourney. People use it to help them in everything from everyday tasks of creating new images and copy all the way up to adding it as a key offering in products and services.
But how do you know if a company you want to work with is actually using it or just telling you they’re AI-powered without any follow-through? In 2019, the AI Now Institute coined the term “AI washing” to define instances where companies might be adding it to their lexicon to get themselves into the conversation and ensure they aren’t being left behind.
In this article, we’ll explore what AI washing is, when it can be dangerous for companies to do it, and its real-world impacts.
Currently, the global AI market is worth $600 billion. An increase of almost $400 billion since 2023.
Source: Exploding Topics
What is AI washing?
The term “AI washing” falls into two categories. The first is when a company is using deceptive marketing or labelling that their products, features, or services are using artificial intelligence when they’re actually not. Or, they’re actually using AI in some form but the components are minimal or significantly overstated. Either way, they’re able to capitalize on AI’s positive perception and marketability that’s happening right now.
Why is it a problem?
You know the feeling when your mechanic says your car will be an easy fix and ready by noon but it’s past 4 and still no call? Similarly, AI washing can build up unrealistic expectations and be a real letdown if they end up underdelivering. While some form of AI has been around for much longer, it’s really surged into the forefront in the last few years and that mistrust can be pushed further into negativity, possibly to a point of no return.
AI washing can also hinder the actual AI innovation that’s being done by expert companies that could actually help associations and other organizations achieve their goals in the work they do.
Common AI washing tactics.
There are many ways that companies can take advantage of this current AI boost. These are just some of their tactics that we’ve seen in the last few years:
- Buzzword Overload: Companies are using AI-related terminology such as “machine learning,” “smart features,” or “neural networks” loosely and without actual AI implementation being put in place.
- Feature Inflation: Basic algorithmic features are presented as sophisticated AI capabilities such as simple automation rules being labeled as “AI-powered recommendations” or basic data analysis being called “AI-driven insights.”
- The “Black Box” Argument: Some companies avoid scrutiny by claiming proprietary AI algorithms cloaked in intellectual property protection and refuse to provide any transparency or evidence of actual AI.
- Misleading Visuals and Marketing Materials: Using imagery, videos, and marketing language to create a false impression of advanced AI capabilities like futuristic interfaces or graphics that don’t reflect the actual underlying technology.
- Overpromising and Underdelivering: Some companies may exaggerate the capabilities and benefits of “AI-powered” products they have in face-to-face conversations or meetings, leading to user disappointment.
Source: The 2025 AI Index Report
Why are companies taking part?
So why would companies and organizations risk their reputation and business to potentially take part in AI washing? There are a few key reasons to think about. First, there’s definitely a strong market buzz around artificial intelligence right now, and businesses naturally want to capitalize on that positive perception, even if their offerings don’t genuinely incorporate much AI. As well, there’s a sense of pressure to be seen actively engaging in this technological shift. Otherwise, companies risk appearing stagnant or out of touch with current innovation.
From a financial perspective, labeling a product or the company itself as “AI-driven” can be a significant draw for funding and investors, pushing some to worry if they don’t align themselves with this trend. Some companies might try to gain a perceived advantage over competitors by associating with AI, whether that advantage is really there or not. It’s also worth noting that in some instances, this overstatement could simply stem from a lack of clear understanding within the company about what actually constitutes AI in their marketing or leadership.
The real-world impact of AI washing.
The practice of AI washing can have some significant real-world consequences for us all. For one, there’s already a bit of skepticism around AI, and when products labeled as “AI-powered” don’t live up to the hype, it can really erode user trust, not just in that specific company but in AI as a whole. This can set back further AI innovation.
As well, these misleading claims make it harder for both everyday users and organizations to make smart decisions about what technology to adopt. It can also overshadow and undervalue the work of companies that are actually doing the hard work of developing and implementing real AI.
Finally, there are ethical concerns that come with this kind of deceptive marketing. It raises questions about whether we need clearer rules and regulations around how companies talk about their AI capabilities and potential consequences if they are trying to mislead the public.
Spot the spin: how to identify potential AI washing.
Be wary of companies that are unwilling to provide any details about their AI solutions. Here are some tips for when you’re considering working with an AI-powered company or new software and features.
- Demand Specificity: Look for concrete details about what AI algorithms are used, the data they are trained on, and the specific tasks they perform.
- Question “Smart” Features: Take a harder look and research features labeled as “smart” or “intelligent.” How are they actually learning, adapting, or making decisions?
- Consider Context and Application: Are the AI capabilities actually necessary or relevant to the product’s core functionality?
- Be Wary of Exaggerated Claims and Promises: Maintain a healthy skepticism towards marketing that promises unrealistic outcomes or portrays AI as a magical solution.
The future of AI is now but there’s no need to rush.
While AI can help speed up or even fully take over rudimentary tasks, you don’t be in such a rush to throw AI software at all of your business problems, especially not all at once. If possible, integrating it into your association’s workflows or input/outputs should be an iterative process. Try to think how it will genuinely add value to your members or help your staff simplify workflows and allow them to focus on the real work. AI can be a powerful tool and help in a wide range of spaces but we need to make sure we’re building trust in it through honest and accurate representation.
