When AI Is All Hype: Exposing the Scams Behind Fake Tech Buzz — AI Washing
You can learn more about the broader phenomenon of AI washing on the Wikipedia AI Washing page
In today’s fast-paced tech landscape, “AI” has become the ultimate buzzword — a label companies eagerly slap on their products to promise cutting-edge innovation. Yet behind the glamour, some firms are merely riding the hype without deploying any real artificial intelligence. Instead, they resort to manual processes or low-cost labor from distant regions to scam customers and gain traction.
Examples of AI Washing
Joonko: The Deceptive Hiring Startup
Take, for example, the case of an AI hiring startup called Joonko in 2024. The company touted its platform as powered by advanced AI to help employers reach a more diverse candidate pool. However, investigations later revealed that much of its functionality was driven by manual processes rather than true machine learning. Regulators eventually stepped in and charged Joonko’s founder with fraud for grossly misrepresenting the platform’s AI capabilities — a classic case of AI washing designed to lure investors with buzzwords instead of genuine innovation.
For more details on regulatory actions against similar misleading AI claims, you can read a related report on fraud in AI startups at SEC.
Coca‑Cola® Y3000 Zero Sugar
Another high-profile instance emerged in the consumer sector when Coca‑Cola launched its futuristic Coca‑Cola® Y3000 Zero Sugar. The company claimed the flavor was “co-created” with artificial intelligence, implying a cutting-edge development process. Critics, however, soon pointed out that no concrete evidence was provided to support the involvement of genuine AI in the recipe’s formulation. Instead, it appeared that the claim was a marketing strategy designed to capture consumer attention in an oversaturated market. Read more about Y3000 here
Amazon’s “Just Walk Out” Technology
Similarly, the tech giant Amazon’s “Just Walk Out” technology in 2024— promoted as a revolutionary system that lets customers exit stores without a formal checkout — has also come under fire. Allegations have arisen that parts of the system are actually operated by human reviewers in India, who manually verify transactions to ensure accuracy. Although Amazon defends these measures as necessary quality control, the controversy has sparked debate on whether the AI claims are exaggerated to conceal underlying manual operations.
You can read more about these concerns in this RNZ report.
Some Platforms Using the AI Label
The misuse of “AI” isn’t limited to these examples:
- CBEX Trading Platform in Nigeria:
Advertised as an AI-driven digital asset trading platform promising near-miraculous returns, CBEX ended up being widely accused of operating as a Ponzi scheme. Multiple sources report that investors discovered their funds were unwithdrawable, triggering comparisons to infamous scams like MMM.
Learn more about the CBEX scandal from Tell.ng and News Express. - Nate Shopping App Scam:
In another striking case, the AI shopping app Nate raised over $40 million from investors by promising a one-click checkout experience powered by advanced AI. However, the U.S. Department of Justice later revealed that — rather than true automation — the app relied on hundreds of human contractors in the Philippines to process orders manually. This misrepresentation not only deceived investors but also contributed to the startup’s collapse and substantial financial losses.
Further details on the Nate case are available from TechFocus24 and Digital Commerce 360.
Why It Matters and the Way Forward
These examples — from Joonko and Coca‑Cola’s Y3000 to tech giant Amazon’s checkout system, and the high-stakes fraud cases involving CBEX and Nate — underscore a troubling trend where “AI” serves as a glossy façade. Instead of enabling true innovation, the AI label is misused to attract investments and customers while masking a reliance on manual labor or unproven technology.
As regulatory bodies tighten scrutiny and investor skepticism grows, there is a pressing need for transparency and accountability in AI-related marketing. Companies must back their AI claims with verifiable evidence and tangible results. For consumers and investors alike, this means digging deeper into the technology behind the buzz — requesting concrete demonstrations of AI functionality, verifying any regulatory approvals, and remaining cautious when promises sound too good to be true.
By equipping ourselves with accurate information and keeping a healthy dose of skepticism, we can help ensure that innovation is built on real, substantiated technology instead of high-tech-sounding marketing gimmicks.
