The AI Deception: Why 40% of 'AI Companies' Are Just Marketing Machines

Episode Description 

Dive deep into the growing trend of companies falsely claiming to use artificial intelligence to attract investors, customers, and talent. We explore real cases of AI fraud, the parallels to the dot-com era's WWW hype, and how to protect yourself from these deceptive practices. 

Key Points Covered: 

• AI as the new internet hype - How artificial intelligence has become what WWW was in the '90s for attracting attention and investment
• The motivation behind AI deception - Why companies claim to use cutting-edge AI technology to attract clients, investors, and employees
• Real-world fraud cases - Tech CEO charged with fraud for claiming his e-commerce company was AI-driven when it actually used regular employees
• The investment impact - How false AI claims can artificially inflate stock prices and attract more investors through misrepresentation
• Historical precedent - Similar AI overstatement cases dating back to the late 2010s, showing this is an ongoing industry problem
• AI's current limitations - Why AI isn't suitable for every job yet, creating opportunities for deceptive claims
• Due diligence essentials - How investors and consumers can verify AI claims before putting money into companies or purchasing products
• Protection strategies - Steps to confirm that company representations about their technology are actually true
• Industry outlook - Why this type of deception will likely continue until AI technology matures

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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.

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, um, has been charged with fraud because he said his company is e-commerce.

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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. 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.

The first case that we saw of this kind of AI uh overstatement actually was seven, eight years ago. It was in the late 2000s, so 201. 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. If you like this video, be sure to click on a few others on our channel to see if there's other information that might be helpful to you about this same subject or me maybe even other related subjects that could assist you with your resolution of your issue.