The Growing Pattern of Technology Misrepresentation
This is not the first time we’ve seen this type of fraud, and it probably won’t be the last. AI, artificial intelligence, is a hot button phrase for technology. It’s kind of like what the internet was in the ’90s. WWW was a new thing. Now AI is the new thing. And what happens is companies that want to be on the cutting edge either to get more customers or to get more investment will claim to be using the latest cutting edge technology to be able to attract clients and investors and even employees.
Companies Making False AI Claims
Well, some companies are saying that they’re using AI for advanced techniques, but in reality they’re not. They’re just using regular employees. And sometimes they’re in the process of trying to use AI, but AI isn’t cut out for everything yet, right? Sometimes AI is not quite up to snuff to get certain jobs done. Well, this company, a tech CEO, allegedly, has been charged with fraud because he said his company is e-commerce.
Case Study: AI-Driven Company Fraud
First company was AI driven, but really it was just using employees. Because they were saying AI, they might have a higher stock price, they might have more investors, they might be able to get more income, but in reality, it was a misrepresentation.
Importance of Due Diligence in Investments
This is the kind of scam that you want to perform due diligence. If you’re doing any kind of investment, you want to make sure you know that the facts that are being represented to you are actually true. Many times are very easy to verify and confirm before you put in your hard-earned money, your hard-earned investment, or even if you’re going to purchase a product, you want to make sure that the representations are actually true.
Historical Context and Future Predictions
The first case that we saw of this kind of AI overstatement actually was seven, eight years ago. It was in the late 2000s, so 2010s. So, you’re going to find that until AI can really do every job, there will be some that’ll be tempted by claiming AI when in reality they’re not using AI.
