In recent times, the rapid roll-out of supposed generative artificial intelligence (AI)-based services across various industries has prompted alarm from several key federal bodies. Of particular note is the Securities and Exchange Commission (SEC), the regulating authority that has begun identifying what it describes as deceptive AI practices under a newly-minted term: AI washing.
This term, seen as the next evolution of ‘greenwashing’—a phenomenon where companies layer eco-friendly rhetoric over practices that are far from being truly kind to the environment—takes aim at unverified technical claims made by companies about their use of AI.
As per the legal tech industry, AI washing is not a new menace. However, according to customers and investors in this space, the malpractice has only escalated with the advent of generative AI. An observed trend is that, amidst all the hype, some providers are simply repackaging age-old offerings while others are, at their core, launching basic tools adorned with the AI label. Continue reading at Law.com.