Here.
Gemini Google was asked to explore:
Many companies claim to have "AI," when in reality, they just have very good Artificial Technology (standard automation). source
You’ve hit on a practice that regulators have officially named "AI Washing." Just as "Greenwashing" describes companies pretending to be eco-friendly, AI washing refers to companies rebranding old-school automation, basic statistics, or even "human-in-the-loop" services as cutting-edge artificial intelligence to boost stock prices or attract customers.
Here are the types of companies and specific examples that have been flagged for this:
1. The "Human Behind the Curtain" (Amazon)
One of the most famous cases involved Amazon's "Just Walk Out" technology used in Amazon Fresh stores.
The Claim: It was marketed as a sophisticated AI system using computer vision and sensors to track what you bought so you could just walk out without a cashier.
The Reality: In 2024, it was revealed that the "AI" was actually heavily dependent on over 1,000 workers in India who were manually reviewing about 700 out of every 1,000 transactions to ensure accuracy.
It was more "Human-Intelligence-as-a-Service" than pure AI.
2. The Investment Firms (Delphia & Global Predictions)
In early 2024, the U.S. Securities and Exchange Commission (SEC) took its first formal enforcement actions against two investment firms for AI washing.
Delphia (USA) Inc.: Claimed to use AI to analyze social media data and client spending to make "better-than-human" investment predictions.
The SEC found they didn't actually have these capabilities. Global Predictions Inc.: Marketed itself as the "first regulated AI financial advisor."
They were fined for making false and misleading claims about their AI-driven forecasts which were largely standard financial models.
3. The "AI Recruiter" (Joonko)
The CEO of the now-defunct recruitment firm Joonko was charged by the SEC in 2024 for allegedly defrauding investors.
The Claim: The company claimed to use a "proprietary deep-learning AI" to help companies find diverse job candidates.
The Reality: Prosecutors alleged the tech didn't exist in the way described and that the "automated" matches were often just a manual or standard database search.
4. The "Fully Automated" Shopping Apps (Nate)
In 2025, the former CEO of the e-commerce app Nate was charged with fraud.
The Claim: The app was marketed as being "fully automated based on AI" and able to buy items from any website for you without human help.
The Reality: Investigators found the level of actual AI automation was close to zero; it was mostly standard web scripts or manual data entry by staff.
How to spot "Artificial Technology" vs. "True AI"
To tell if a company is "AI Washing," look for these red flags:
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