Pseudo AI: Still a Thing, Still a Problem

Cognilytica Insights

? AI is still full of too much hype. Sprinkle a bit of AI, and your humdrum product gets more exciting.

But, what if you don’t actually have the capabilities to add AI? Then maybe you can just make stuff up. You know, have people pretend they are machines.?

While AI is all about machines that have the intelligence like people, Pseudo AI or “AI washing” is when a company or product claims that AI is being used for a specific task or feature, but in reality, it’s people doing that task.

?? AI: Machines that think and act like people

?? Pseudo AI: People that pretend to be machines that think and act like people

Tesla recently got caught up in Pseudo AI when they debuted their Optimus humanoid robot, and observant viewers noticed that there was a human alongside the robot performing the actions using a VR glove or similar device.

Why do companies like Tesla fake some of their AI capabilities? Glass half-full folks would say that maybe these human-assisted AI activities are meant to show these companies are working on something cool, without being ready to actually show it. Glass half-empty folks would say this is all a ploy to gin up the stock price.

??Or maybe it’s all just a joke aimed at the media.

Cognilytica Called Out Pseudo AI in 2018!

In the startup world, “faking it until you make it”, is a common practice.?

About a decade ago, Reddit was famously known for creating many fake accounts to post on the site to pretend there was organic activity happening on the site. Zappos pretended to have more inventory by taking photos of shoes at Foot Locker, and just reselling those shoes. AirBnB reposted listings on Craigslist to grow their network. Even Microsoft faked that they had an operating system that they sold to IBM before rushing out to buy one from another company.

When it comes to AI, all the way back in 2016, Bloomberg highlighted the plight of humans spending 12 hours a day pretending to be chatbots for calendar scheduling services such as X.ai and Clara. The job was so mind-numbing that human employees said they were looking forward to being replaced by bots.

In 2017, the business expense management app Expensify admitted that it had been using humans to transcribe at least some of the receipts it claimed to process using its “smartscan technology”. Scans of the receipts were being posted to Amazon’s Mechanical Turk crowdsourced labor tool, where low-paid workers were reading and transcribing them.

Cognilytica called out the problem of Pseudo AI? back in 2018!?

Pseudo AI is still a real issue, but just hasn’t been getting as much coverage again, until recently.?

Why is Pseudo AI an issue?

Pseudo AI is posing significant challenges and ethical questions. For publicly traded companies the SEC warns of the harm that faking AI can cause to investors and US securities law. But the use of fake AI poses some real threats for smaller businesses and individuals as well.

?? Misleading Consumers: Pseudo AI creates a false impression of a product's capabilities and leads companies to exaggerate the capabilities of their products, making them appear more innovative or efficient than they truly are. This misrepresentation can lead consumers to make uninformed decisions, potentially investing in technologies that do not meet their needs, expectations, or security rules. When exposed, and the product's actual capabilities are revealed, consumer disappointment can harm the brand's reputation and customer trust long-term for both your brand and the AI industry.

?Undermining Trust: Companies often overpromise and underdeliver, especially around AI, one of the major causes of AI project failure and a main reason for AI winters of the past. People fear AI enough as it is, so faking AI just further erodes trust. It also erodes trust in legitimate AI technologies and the brands that offer them. It erodes trust for consumers unsure about whether or not a human is in the loop, possibly spying on their private data. It erodes trust around disclosure and consent making it harder for consumers to identify genuine AI solutions.

???? Stifling Innovation: When the market has fake AI products that do not deliver real AI benefits, it can deter investment and interest in genuine innovation and research within the field. Investors and stakeholders may become wary of claims about AI capabilities, potentially leading to a decrease in funding and support for real AI research and development efforts.?

?? Regulatory and Legal Risks: With regulatory bodies like the SEC signaling a crackdown on Pseudo AI, companies may face not just financial penalties but also reputational damage. The recent focus by regulatory bodies on “AI washing” indicates a growing intolerance for deceptive practices related to AI.?

?? Ethical Concerns: Pseudo AI contributes to a misleading narrative about what AI can and cannot do. AI is not a solution for every single problem, nor is AI capable of solving problems that the fakery implies that it can. Pseudo AI is also potentially fueling unrealistic fears and mistrust around the technology. By distracting from these serious discussions, the use of Pseudo AI where humans are addressing the shortcomings of the machines, while attempting to portray intelligent machines as making those decisions autonomously, hampers the industry's ability to address and mitigate the genuine ethical and trustworthy implications of AI technologies.

?? Advice for you: Don’t Fake it Until you Make it with AI

??Don’t make fake AI claims if you’re not there yet. Stop faking it. Don’t make a human do a machine’s work unless everyone knows that a human is doing it.

? If you use humans in the loop where people might not expect it, disclose it. If parts of your system are completely, 100% machine automated, and other parts are not, disclose it.?

???AI systems can provide real benefits to organizations and society. But you need to put in the real work.

Despite the obvious laughs of some of these fake AI demos, Pseudo AI is no joke. Companies looking to make truly Trustworthy AI know that making a human pretend to be a machine doesn’t solve the real ethical and trustworthy dilemmas of AI systems. This is stuff we cover in quite a bit of detail in our Trustworthy AI courses. Check out our Intro to Trustworthy AI free course and learn what you need to do to create Trustworthy AI at your organization! Don’t fake it until you make it- do AI the right way!

AI Best Practices: Latest Insights

• ?? {Robotics} Staples Implements AI-Powered Picking Robots for Fulfillment - Staples is partnering with a robotics company to bring AI-powered robots to centers nationwide, aiding in next-day delivery and assisting with labor shortages. Will this be a robotics project here to stay or get relegated to the junk heap like so many other robotics technologies? [Read More]
• ???????? {AI Applications} - Artificial intelligence, real emotion. People are seeking a romantic connection with the perfect bot - The Movie HER is playing our IRL. People are turning to digital companions and developing emotional attachments to these bots using them to cope with things like loneliness and comfort and support. Who needs to interact and date real humans where there is an AI waiting for you? [Read More]
• ??? {GenAI} - OpenAI teases ‘Sora,’ its new text-to-video AI model - OpenAI recently unveiled its new text-to-video model Sora, which can generate videos up to a minute long based on whatever prompt a user types into a text box. It’s not yet available to the public, but the announcement roused a frenzy of reactions online. Some are excited for the possibilities, while others are concerned about the potential to erode human jobs and further the spread of digital disinformation. Can you even keep pace with the updates? [Read More]
• ???? {Education} - Ohio builds AI toolkit for teachers, students -Ohio government leaders recently rolled out a new toolkit about AI that is specifically designed for educators, students and parents.Ohio Lt. Gov. Jon Husted encouraged schools to investigate AI curriculum, weighing the benefits of the new technology along with issues like student privacy, data security and ethics. AI education continues to be vital for learners of all ages. [Read More]
• ?? {AI Applications} - Cruise Line Using AI To Reduce Food Waste - Cruise lines have too much food - who knew? Royal Caribbean Cruise Lines are introducing new technology to help them balance the unlimited food options on cruises. With the help of AI, the cruise line will be able to adjust food production in real time. Just when you thought cruises meant unlimited binging, AI is here to help save you … from yourself. [Read More]

?? Events and Opportunities to Hear from Cognilytica

??? AI TODAY WILL BE IN AUSTIN, TX MARCH 8-11 FOR SXSW 2024! ??? ??AI Today hosts will be live podcasting at SXSW 2024 March 8 – 11, 2024. If you plan to be there, drop us a note! ??

• February 29, 2024: Reuters Webinar: Upstream Joins the AI Revolution Virtual / Online webinar, 10-11am CST - [Register Here]
• March 7, 2024: PMI Houston, TX Chapter: “Running Successful AI Projects and Avoiding Failure” Virtual / Online session, 5:30 to 6:30pm Central Time ?- ?[Register here]
• March 8-11, 2024: AI Today Podcast Activation @ SXSW - AI Today podcast is hitting the road. We’ll be podcasting live at SXSW in Austin, TX between March 8-11. If you’re in town during that window, message us!
• March 20, 2024: PMI Metropolitan St. Louis Chapter: “Running Successful AI Projects and Avoiding Failure”: Virtual/Online session, 6:30pm-8pm CT. Participants will receive 1 PDU for this session. - ?[Register here]
• March 21, 2024: PMI Pikes Peak, CO Chapter: “ Winning Tactics for AI Implementation Success” Virtual / Online session - 12pm-1pm MT [Register here]
• March 26, 2024: PMI (North) Carolina Chapter: “What you need to know, today, to successfully run and manage AI projects” Virtual / Online session -? 6-7pm Eastern Time, [Registration opening soon]
• March 28, 2024: PMI Belgium Chapter - “How to Run Successful AI Projects and Avoid Failure” Virtual / Online session - 6-7pm Belgium Time, [Registration opening soon]
• April 8, 2024: PMI Southern New England: “How to Run Successful AI Projects and Avoid Failure” - Session during SNEC-PMI's 16th Annual Conference in person in Hartford, CT. [Register here]
• April 9, 2024: PMI Washington DC Chapter: “How to Run Successful AI Projects and Avoid Failure” 7:30-8:30pm EST in Reston, VA [Registration opening soon]
• April 17, 2024: PMI Northern Alberta Chapter, “How to Run Successful AI Projects and Avoid Failure” Virtual / Online session? 6-8pm MT [Registration opening soon]
• April 18, 2024: FORUM: Women Making an IMPACT, Empowering Women in AI - virtual/ webinar, 1pm EST [Register here]
• April 29, 2024: PMI Saudi Arabia Chapter: “How to Run Successful AI Projects and Avoid Failure”, Virtual / Online session -? 7PM-8PM Saudi Time (10AM-11AM Eastern Time) [Registration opening soon]
• May 7, 2024: PMI Delaware Valley Chapter - ‘How to Run Successful AI Projects and Avoid Failure”, Virtual / Online session -? 6:30PM-8PM Eastern Time [Registration opening soon]
• May 21, 2024: PMI New Jersey Chapter - “What you need to know, today, to successfully run and manage AI projects”, Virtual / Online session -? 6:30PM-8PM Eastern Time [Registration opening soon]
• July 10, 2024: PMI Madrid, Spain Chapter: “Best Practice Methods for Successful AI Projects”, Virtual / Online session - 7:00 - 8:00 PM Spanish time? [Registration opening soon]
• July 10th, 2024: PMI San Francisco Chapter - “Successful approaches to running AI Projects - Avoiding the Top Reasons why AI Projects Fail”, Virtual / Online session -? 6-7:30 pm PST [Registration opening soon]

?? Move Forward with AI Best Practices - Training amp; Certification

Cognilytica’s AI best practices & Trustworthy training and certification continues to be in high demand. Haven’t yet enrolled in a certification or training? What’s holding you back?

• ?? CPMAI v7 - Get Certified with comprehensive AI & ML Project Management Training. Includes: AI Fundamentals, AI Applications, Managing Data for AI, Data Preparation for AI, ML Algorithms, Generative AI, CPMAI Methodology, and Trustworthy AI. [Enroll now]
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Trustworthy AI: Latest Insights

• ?? {Irresponsible AI} - Air Canada must honor refund policy invented by airline’s chatbot - After months of resisting, Air Canada was forced to give a partial refund to a grieving passenger who was misled by an airline chatbot inaccurately explaining the airline's bereavement travel policy. The airline’s? chatbot made up a policy, and when taken to court, was required to pay partial refund to the wronged customer. Repeat after me: KEEP A HUMAN IN THE LOOP and don’t irresponsibly deploy AI chatbots! [Read More]
• ?? {Ethical AI} - Trustworthy AI Series: Ethical AI Concepts -? When discussing AI ethics, it’s important to have conversations around Right/Wrong and what it means in an AI discussion to “Do No Harm”. The AI Today podcast digs into Ethical AI concepts, which is part of our Trustworthy AI Framework. [Listen here]
• ?? {Responsible AI} - Trustworthy AI Series: Responsible AI Concepts. The Responsible AI layer and responsible AI concepts address “if you do AI, do it the right way”. In this AI Today episode, we go over at a high level the Responsible AI layer and responsible AI concepts. [Listen here]
• ???? {Responsible AI} - AI hiring tools may be filtering out the best job applicants - A late-2023 IBM survey of more than 8,500 global IT professionals showed 42% of companies were using AI screening "to improve recruiting and human resources". Do we need to make sure to keep humans in the loop in the hiring process? [Read More]
• ?? {Humans in the loop} - ‘Human contributions’ are focus of inventorship analysis in AI age, patent office says -? New guidance from the U.S. Patent and Trademark Office outlines how the agency will analyze inventorship in the age of AI. They stress the importance of focusing on “human contributions” to innovations. But what does that mean? [Read More]
• ?? {AI Regulation} - Nvidia, OpenAI and Amazon among 200 companies join new US AI Safety Institute Consortium -The US AI Safety Institute Consortium (AISIC) is the latest manifestation of the Biden administration's consensus-driven approach toward AI regulation. Its goal is to advise on the suitability of new guardrails for AI products and services and over 200 organizations have joined AISIC, including Nvidia, OpenAI, Apple, JPMorgan and Amazon.? Is this board just for show like many other AI boards of the past? [Read More]

??? What our Community is Saying

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