I couldn’t resist posting this link to an article I found by Stewart Muglich, “AI Washing: Regulator Urges Accurate Disclosures by Issuers . At one point the article states, when “statements are not supported by facts and corporate activities, they are misleading and promotional, thus inappropriate.”[1] I whole heartedly agree but I would go a step further. Corporations are exaggerating and in effect lying about the extent of AI their corporation utilizes. Yet again the case builds for more government regulation – with high penalties to ensure corporations act ethically.
Ok back to the books!
[1] https://www.ahbl.ca/ai-washing-regulator-urges-accurate-disclosures-by-issuers/
Thank you for sharing, Doris! This is a (very annoying) problem in the startup space, where every pitch starts with “And by leveraging AI…” but it ends up just being an API call to GPT-4.
Hi David
That’s very interesting, disappointing and somewhat not surprising. I wonder if investors, and or shareholders recognize this as being akin a very minimal AI incorporation the statement. In the long term, this must impact corporations negatively. They would be seen as less reliable and perhaps this may be enough to impact share prices. Perhaps this is the means that will ultimately result in change for better with more substantive disclosure.
Thanks for the comment!
Doris