A domestic home appliance company promoted that its recently released air cooler had an "artificial intelligence (AI) temperature control feature," then changed the wording to say it had an "automatic temperature control feature." It accepted the Fair Trade Commission's indication that it suspected "AI washing." AI washing is packaging something as using AI technology for marketing even though it has little or nothing to do with AI.
AI washing has emerged as AI technology has gained so much spotlight, becoming a problem worldwide. In Korea, the Lee Jae-myung administration has declared it will support related corporations and products as it pursues the national agenda of "entering the global top three in AI." Calls are growing to regulate corporations seeking to free-ride on such government policy. Accordingly, the Fair Trade Commission has decided to create labeling and advertising guidelines next year to regulate AI washing.
◇ Said AI technology was applied… it turned out to be a simple automation feature
The Fair Trade Commission said on the 7th that it found 20 suspected cases of AI washing after monitoring home appliances and electronics sold by domestic e-commerce companies with the Korea Consumer Agency (KCA).
Representative cases include an "AI wash mode" that operates only when the laundry load is 3 kilograms or less, "AI air purification" that runs only under specific conditions, and an "AI refrigerator" that automatically adjusts to the internal temperature. From the names, it looks like AI technology was applied, but in most cases it is at the level of automation.
Corporations attempt AI washing because consumers readily open their wallets for products labeled as using AI. In a five-day online survey by the Fair Trade Commission of 3,000 consumers who know the concept of AI, 57.9% of respondents said, "I'm willing to buy AI products even if they are more expensive."
◇ Fair Trade Commission prepares measures to sanction AI washing… the United States already regulates it
The Fair Trade Commission sees AI washing as potentially distorting consumers' rational choices. It may constitute "exaggerated or deceptive advertising" under the Act on Fair Labeling and Advertising. Accordingly, the Fair Trade Commission plans to prepare guidelines on AI washing next year together with the consumer agency.
In the United States, regulators have already been imposing sanctions as AI washing has stirred social controversy for years. Amazon Go by Amazon, the world's largest e-commerce company, is a representative case that heightened U.S. awareness of AI washing. Amazon Go is a system that automatically checks out when a consumer walks out with goods. Amazon said, "Thousands of sensors and cameras automatically recognize what items customers buy and check them out."
However, in Apr. last year, the IT outlet The Information reported that Amazon was employing about 1,000 staff in India to operate its cashierless payment system. Amazon said, "Indian workers only performed verification work." Even so, Amazon's explanation of a "clerkless, unmanned store" lost credibility.
The U.S. Federal Trade Commission (FTC) filed a lawsuit last year seeking an order to halt services and provide consumer refunds, saying that the corporations coaching service company "Air AI" engaged in deceptive acts prohibited by the Federal Trade Commission Act. According to the FTC, the company promoted that "AI replaces human salespeople" and sold expensive programs, but in reality it provided functions such as placing calls on behalf of users and booking appointments.