The battle of fake and Pseudo AI.

“It has become a global race for AI superiority, but while organisations battle it out at the finish line, the technology is just starting the race.”

AI has become the 21st century’s biggest new industry. It is expected to reach $266 billion by 2027. With more companies now implementing AI systems or generating AI-based solutions than ever before. AI has become the driving force for funding from investors and venture capitalists. This has led to an increase of companies promising AI systems that they will not be able to deliver on.

Companies do not want to lose investors or their competitive edge. Instead, companies have replaced their AI systems with people, pretending to be the AI, which should do the work instead of humans. This fake AI or pseudo-AI has increased over the past few years.


So, what is Pseudo-AI?

Pseudo-AI is where companies fake the presence of an actual AI or have human elements within the AI system.

There are several reasons for this, AI is dependent on humans for training. The AI needs to learn how they use a system, similar to real-life situations. However, demonstrating you are past this training stage and fully automated creates value. Giving a company a competitive edge and the attention of investors.

Companies have also lied about AI capabilities, replacing parts with real people. Where the ambitions of the company has exceeded the capabilities of the technology or development teams.

Even companies like Facebook, which heavily invest in AI, have relied on people for their virtual assistants on their messenger platform.

X.AI and Clara Labs advanced AI scheduling system for appointments was identified as a pseudo-AI. With their employees booking appointments on behalf of the AI system.

This is happening because companies may not have the budget to produce such an AI system. Hiring people on a low wage can be highly cost-effective than developing and building an entire AI system. Resulting in a system that is partially or fully human-operated.


What’s wrong with pseudo-AI?

The intentions of a business may be good, but using a pseudo-AI is lying to investors and its customers. Full transparency is needed to the extent of the AI role within a business. People replacing the AI role creates unethical practices, fraud, and mistrust. This will also cause damage to AI development within society.

Pseudo-AI and actual AI are at two different stages. Pseudo AI is far beyond the limitations of current AI. This means new companies may be overlooked if their AI doesn’t meet the standards of the pseudo-AI. Halting the process of AI, and replacing it with more fake AI systems within businesses.


The future of AI?

More companies now promote ground-breaking AI systems. However, humans are playing an increasing role within the industry. With more stories of pseudo-AI, mistrust for the sector is becoming present.

While the industry will continue to grow, we must understand the current capabilities of AI. Creating better transparency from a business using AI systems and hold them accountable for false claims. If not, we may see an increase in mistrust and reduced investment within this sector. It has become a global race for AI superiority, but while organisations battle it out at the finish line, the technology is just starting the race.

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