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Amazon had an AI store…secretly powered by Indian workers on minimum wage.
Amazon’s AI Technology Scrutinised
Amazon’s “Just Walk Out” technology in its grocery stores has been criticised for relying on human workers to verify transactions instead of solely using AI. Reports revealed that around 1,000 workers in India manually reviewed nearly 75% of transactions, leading to accusations of “AI washing.” This term describes companies that overstate their AI capabilities to appear more innovative than they are. Amazon defended its system, stating that human reviewers are common in AI systems to ensure accuracy.
The Rise of AI Washing
AI washing is becoming a significant issue as more companies claim to use AI without fully implementing it. This phenomenon is driven by competition for funding and the desire to appear cutting-edge. A study found that 40% of tech firms claiming to be “AI startups” in 2019 used little to no AI. This misrepresentation can lead to businesses overpaying for technology and investors struggling to identify truly innovative companies. AI washing also erodes consumer trust in genuinely groundbreaking AI products.
Regulatory Responses and Future Outlook
Regulators are starting to address AI washing. In the US, the Securities and Exchange Commission has charged firms for making false AI claims. The UK’s Advertising Standards Authority has also investigated misleading AI advertisements. Experts believe the hype around AI will eventually subside, making “AI-powered” branding less significant. However, it remains crucial to ensure AI is used appropriately and not just for marketing purposes.
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*An AI tool was used to add an extra layer to the editing process for this story.
