How to uncover vendor-AI washing, and recognize what's real

Artificial Intelligence (AI) is everywhere these days. From chatbots to self-driving cars, it’s transforming industries left and right.

But with all the buzz, it’s easy for companies to get caught up in the hype and oversell their AI capabilities. That’s where AI washing comes in.

What is AI washing?

Think of it like greenwashing, but for AI. It’s when companies slap the “AI-powered” label on products or services that don’t use much (or any) AI.

It’s a marketing tactic designed to make you think you’re getting (and paying more for) something cutting-edge when you might not be.

Why do vendors do it?

We all know AI is a hot topic right now. But why are some companies stretching the truth about their AI capabilities? There are a few reasons why AI washing happens:

• Jumping the gun: Some vendors get a little overexcited about the future. They might promise AI features that aren’t built yet, hoping to build hype and attract early adopters.
• Chasing the investment: AI, especially generative AI, is a magnet for investors right now. Companies might exaggerate their AI involvement to secure funding, even if the technology isn’t fully integrated or developed. It’s a bit like the dot-com boom, where slapping “dot-com” on your name suddenly made you more valuable.
• Fuzzy definitions: AI is a broad term, and not everyone understands the nuances. Companies might use vague language or buzzwords, leading to confusion about what their product does with AI.

Why should you care?

AI washing isn’t just annoying; it can lead to wasted time, money, and missed opportunities.

Investing in a solution that doesn’t deliver on its AI promises can also set your business back, especially if you’re strategizing to try and be an early adopter of new technologies in your industry.

How to spot AI washing: a guide

• Ask the tough questions

Don’t be afraid to grill potential vendors. The Federal Trade Commission has detailed the basic questions organizations can ask to determine whether a vendor is AI washing:

1. Ask how they use AI.
2. What specific algorithms do they employ?
3. Where do they get their data?
4. How does AI enhance their offering?

If they can’t give you clear, specific answers, it’s a red flag.

• Request proof

Ask for case studies, demos, or even a free trial. Seeing the AI in action is the best way to gauge its effectiveness.

• Do your homework

Research the vendor’s background. Have they worked with AI before? Do they have any certifications or partnerships in the AI space? A bit of digging can reveal a lot.

• Check the reviews

What are other customers saying? Look for independent reviews and testimonials to get a sense of the vendor’s reputation and the real-world impact of their AI solutions.

• Transparency is key

Genuine AI vendors are upfront about their technology, its limitations, and the data it uses. If a vendor is being cagey or overhyping their capabilities, proceed with caution.

• Consult the experts

If you’re not an AI whiz (and let’s face it, most of us aren’t), consider bringing in an AI consultant to help you evaluate vendors and their claims.

AI washing in e-commerce: A closer look

The e-commerce space is a particularly fertile ground for AI washing. After all, who wouldn’t want to promise customers a smarter, more personalized shopping experience? But how can you tell if a platform’s AI capabilities are the real deal or just smoke and mirrors?

What AI can actually do for e-commerce

Let’s set some realistic expectations. Legitimate AI in e-commerce can:

• Personalize product recommendations: Suggesting items based on a customer’s browsing history or purchase behavior.
• Optimize search results: Understanding user intent and delivering more relevant products.
• Automate customer service: Using chatbots to handle routine inquiries and free up your team for complex issues.
• Predict demand and manage inventory: Helping you stock the right products at the right time.

Notice a pattern? Real AI is about solving specific problems and making your e-commerce operations more efficient and customer centric.

Spotting the fakes

Here’s when to get suspicious:

• Vague claims: If a vendor throws around terms like “AI-powered” without explaining how it’s used, be suspicious.
• Lack of evidence: Ask for case studies or data that prove their AI claims. If they can’t provide concrete results, it’s a red flag.
• Overpromising: Be wary of vendors who claim their AI can do everything. AI is powerful, but it’s not magic.

Testing AI products: A quick checklist

1. Define your goals: What specific problem are you trying to solve with AI?
2. Start small: Don’t bet the farm on a single AI solution. Test it out on a smaller scale first.
3. Measure the impact: Track the results of your AI implementation. Is it delivering the promised benefits?
4. Iterate and improve: AI is constantly evolving. Don’t be afraid to adjust your approach based on the results you’re seeing.

Do your research and choose carefully

AI can be a powerful tool for B2B businesses, but don’t fall for the hype. By asking the right questions and doing your research, you can avoid AI washing and find the solutions that will truly transform your business.