700 Indian Engineers Disguised as AI Tools: A Closer Look – Firstpost

Builder.ai, a London-based startup valued at $1.5 billion and backed by Microsoft and a Qatari sovereign fund, has filed for bankruptcy amid revelations that its app development was primarily reliant on human engineers in India rather than actual AI technology. Claims of using an AI-powered platform, marketed through a digital assistant named “Natasha,” were found to be misleading. Reports indicated that around 700 engineers were responsible for coding, debunking the company’s assertion of rapid AI-generated app development. The scandal unfolded when the new CEO, Manpreet Ratia, uncovered significant financial misreporting, leading to a $37 million seizure by lender Viola Credit. Accusations of inflated revenue figures further compounded the situation, resulting in a federal investigation. The collapse has raised alarms over “AI washing,” where traditional services are falsely marketed as AI-driven, and has led to the loss of around 1,000 jobs, marking a significant downturn in the AI startup landscape.

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