Source: Kelley Drye & Warren LLP

Kelley Drye & Warren LLP analyzes an emerging trend in litigation known as "AI-washing," where companies face legal action for allegedly making false or misleading claims about their artificial intelligence capabilities. The article points to recent lawsuits filed against major tech companies like Apple as prime examples of this new wave of consumer protection and false advertising litigation. These cases argue that companies are capitalizing on the hype surrounding AI by exaggerating the integration or sophistication of AI in their products and services to mislead consumers and investors.

The analysis suggests that these lawsuits signal heightened scrutiny from plaintiffs' attorneys and regulators. Companies are now on notice that their marketing and public statements regarding AI will be carefully examined for accuracy and substantiation. To mitigate the risk of such litigation, the authors advise businesses to be precise, truthful, and transparent in their advertising. This includes avoiding vague or unsubstantiated jargon and ensuring that any claims about AI functionality can be clearly demonstrated, marking a critical new compliance checkpoint for corporate legal departments.