Investors sound alarm on startup ‘AI washing’

Infosys co-founder Narayana Murthy’s recent concerns over the growing hype surrounding artificial intelligence (AI), wherein many systems being marketed as AI are merely traditional programming, resonate strongly with the venture capitalist community.

“I think somehow it has become a fashion in India to talk of AI for everything. I have seen several normal, ordinary programmes touted as AI,” Murthy remarked at a recent conference in Mumbai. Agreeing with Murthy, several VC firms told FE that they are increasingly encountering “AI washing” — a practice wherein startups inflate their AI credentials to attract funding.