Microsoft-Backed AI Startup Discovers Chatbots Are Actually Human Employees

Builder.ai, a startup promoted as an AI-driven app development platform, has been exposed for employing human engineers to do the work that it claimed was performed by AI. The company utilized a chatbot ostensibly powered by AI, named Natasha, while actually relying on 700 engineers in India to interact with clients and develop apps. This practice is indicative of a broader issue in the tech industry known as “AI-washing,” where companies exaggerate their use of AI for marketing purposes. Meanwhile, consumer sentiment towards AI is tepid, with many preferring real human interaction over chatbots. Builder.ai faced severe financial issues, including allegations of fraud and bankruptcy filings in multiple countries after its actual revenue proved to be far less than claimed, leading to significant debts owed to major corporations like Amazon and Microsoft. The company announced it would enter insolvency proceedings due to its unsustainable financial practices.

Source link