AI Washing: How to recognise real innovation behind AI promises

Artificial intelligence - a key topic of digital transformation in recent years. The possibilities offered by AI seem almost limitless: from automated processes and personalised customer experiences to completely new business models. ?

Companies are increasingly?utilizing?this versatile use of AI to market their own products as ‘AI-supported’, even though there is often more ‘seeming’ than ‘being’ in the products.?

Similar to ‘greenwashing’, a new phenomenon is developing, known as ‘AI washing’. Companies are using?targeted?marketing strategies to profit from the AI hype, even if their products are not really based on real AI. ?

‘AI’ is increasingly being used as a label to fake innovation where there is none. This carries risks - both for credibility and for consumer trust.?

4 key questions for real AI innovations?

Fake AI can be found faster than you think. One example of this is the beloved chatbots that almost every company now has permanently integrated into its website. They are often advertised as having artificial intelligence, but most chatbots are based on pre-written scripts and do not have the independent machine learning capabilities of ‘strong AI’. In order to expose AI washing and ensure that a product really delivers what it promises, you should be guided by four key questions: ?

1. Does the product have capabilities that go far beyond what is currently recognised as AI? ?

Many products are advertised as ‘intelligent’ or ‘AI-driven’, even though they only use conventional algorithms or automation that have been around for years. It is important to check whether the claimed capabilities are actually based on advanced AI technologies or whether they are old familiar methods that have simply been repackaged. ?

2. How does the seller define artificial intelligence? ?

As there is no standardised definition of AI, this term can be interpreted in very different ways. Some sellers use the term AI to describe simple rule-based systems, while others mean really complex machine learning processes. The provider must be able to give a detailed explanation of their AI term and how it is implemented in the product.? ?

3. Which specific AI technologies are used? ?

Another criterion is the question of the actual technologies used. Is it machine learning, neural networks or other advanced AI methods? Or are merely automated processes labelled as ‘AI’? These details help to assess the depth of AI integration in the product. ?

4. How does the manufacturer intend to keep pace with evolving AI technologies? ?

AI technologies are evolving rapidly. It is therefore important to know how the provider plans to keep pace with these developments. Does the company have a clear roadmap for the further development of its AI-based functions? This question helps to assess whether the company is able to offer relevant and up-to-date AI solutions in the future.?

AI washing at rooom??

We use artificial intelligence in a targeted manner to create real added value and not to engage in AI washing. One example is our rooomAssistant,?which revolutionizes?classic chatbots with AI avatars.?While conventional chatbots often seem impersonal, our AI avatar not only gives these systems a human component but is also able to perform machine learning. It can respond to customers emotions, which enables authentic, dynamic communication.? ?

Another innovative feature that we offer at rooom is the AI-supported generation of virtual environments in our spaces. Users can simply use a description mask to enter what the environment of their space should look like, and the AI takes over the design. This technology makes it possible to create fast and customized immersive environments that are perfectly adapted to users needs. ?

We are also already working on improving the 3D modeling process through the use of AI.?With the help of machine learning, we not only want to speed up this process, but also raise the quality of the models generated to a new level.?

On the way to transparent AI regulations?

Currently, work is in full swing on guidelines for artificial intelligence and thus indirectly also for AI washing. The European Union's new AI law came into force on the first of August this year. The aim of this legislation is to ensure that AI systems used in the EU are safe, transparent, comprehensible, non-discriminatory and environmentally friendly. Although the law is not yet directly aimed at combating AI washing, greater transparency also means greater traceability for consumers to better understand applications.[1]

In the US, companies such as Delphia and Global Predictions Inc. have already been fined for falsely advertising AI-based algorithms.[2] The first steps against AI washing have therefore already been taken, but it is not enough to rely on these initial and bold regulations. Especially at a time when the market is flooded with AI offerings, it is crucial for companies and consumers to keep a clear view of the actual benefits of AI solutions.?

AI trends of the future ?

There is currently a great deal of interest in so-called Large Language Models (LLM) such as ChatGPT. Mark Anderson, an AI expert from Seattle, highlights the limitations of these technologies.?He sees Pattern Discovery (PD), Explainable AI (XAI) and Ethical AI (EAI) as the top three future trends in AI. [3] ?

Pattern Discovery (PD) enables machines to independently formulate hypotheses and rely on trustworthy data.?This technology could not only strengthen trust in AI results, but also make it more difficult for companies to misuse AI or make misleading claims. ?

Explainable AI (XAI) aims to make the decision-making processes of AI systems transparent. AI systems become explainable and comprehensible tools. ?

Ethical AI (EAI) ensures that AI systems comply with ethical standards and remain unbiased. By ensuring that AI systems operate ethically and transparently, EAI can prevent companies from misusing AI as a pure marketing tool.

AI with responsibility ?

The future of artificial intelligence is exciting and promising, but it also brings challenges, such as the phenomenon of AI washing. It is becoming increasingly important to critically question the integrity of AI solutions. Only through transparency, ethical standards and sound evaluation can we ensure that AI really contributes to the progress it promises.

For us at rooom.com - Enterprise Metaverse Solutions, this means focusing clearly on the added value of our AI-supported solutions. We do not rely on empty promises, but on genuine innovation and sustainable,?user-centered?technologies.

Sources:

[1] https://www.europarl.europa.eu/topics/de/article/20230601STO93804/ki-gesetz-erste-regulierung-der-kunstlichen-intelligenz

[2] https://bankingjournal.aba.com/2024/04/two-investment-advisers-agree-to-pay-400000-to-resolve-sec-ai-washing-allegations/

[3] DUP-Magazin, Ausgabe 3/2024, S.19