Hype over reality: How AI washing can dent businesses and delude users

Soon after the release of OpenAI’s ChatGPT in 2022, there was an explosion of news and a massive surge of interest in generative AI, triggering a hype cycle that continues to peak with each new model or feature. Suddenly, it seems every tech company or startup is marketing an AI product that promises to revolutionise consumer behaviour.

According to a study by an investment fund for new tech firms, the number of startups mentioning AI in their pitches rose from 10 per cent in 2022 to more than 25 per cent in 2023. Over 50 per cent of S&P 500 companies referenced AI in their earnings calls last year, according to a report by NBC News.