Currently there is an overwhelming growth of startups, which make extensive use of the “AI” label, and it has become a magnet for investors. However, behind this fashionable acronym, innovative technology is not always hidden.
Unfortunately, many companies resort to rebranding old algorithms as “AI” to attract capital, misleading unsuspecting investors and consumers.
Examples of “fake AI” in startups:
- Algorithm reuse: A startup promotes its “revolutionary product recommendation system” based on a collaborative filtering algorithm that has been around for decades.
- Misleading labeling: A company offers an “AI-powered virtual assistant” that actually just uses a natural language processing API from a third-party provider.
- Exaggeration of capabilities: A startup claims to have an “AI algorithm that predicts market behavior with 99% accuracy,” without presenting scientific evidence to support this claim.
How to avoid falling into “fake AI” traps?
- Do thorough research: Before investing in a startup that claims to use AI, do deep research on its technology, team, and experience.
- Demand transparency: Ask for detailed information about how the startup’s AI technology works and avoid companies that refuse to provide details.
- Consider the context: Don’t get carried away just because a startup claims to use AI. Evaluate whether the technology really adds value and solves a genuine problem.
- Seek experts: Consult with AI experts to get an unbiased opinion on a startup’s technology.
Remember, AI has enormous potential to transform industries and improve our lives. However, it is crucial to be a smart consumer and investor, able to discern between real innovation and deceptive marketing strategies.