AI-Washing: The new risk in brand storytelling

Artificial intelligence has quickly become the new marketing currency. Across financial services, retail, healthcare and beyond, hardly any sector in India has escaped the pull of the ‘AI’ tag.

Brands are eager to showcase innovation, investors are chasing transformation stories, and consumers remain curious about what this technology can deliver.

But amid the excitement, a risky trend has taken hold: AI-washing.

Much like greenwashing in sustainability, it is the casual or exaggerated use of the term ‘AI’ in branding and communication—often without meaningful technology behind it. It isn’t just a harmless buzzword.

AI-washing represents the deliberate misrepresentation, misinterpretation, or misuse of artificial intelligence to make a product appear more advanced than it really is. The short-term gain is attention. The long-term cost is erosion of trust.

Every overstatement chips away at long-term value creation. As custodians of brand reputation, we must ask whether our claims reflect reality—or merely decoration.

What AI-washing looks like

The signs are easy to spot. In financial services, rule-based chatbots are rebranded as ‘AI advisors’. In healthcare, clinics promise ‘AI diagnostics’ while relying on manual inputs and standard reporting tools. In retail, loyalty programmes or recommendation engines are marketed as ‘AI personalisation’ even when powered only by basic segmentation.

The issue is not experimentation. Innovation often begins with incremental steps.

The problem is over-claiming—presenting routine improvements as though they were breakthroughs. In India, where trust is a precious commodity, such exaggerations can quickly backfire.

AI-washing is not a victimless act. Consumers end up believing they are experiencing cutting-edge technology when they are not.

Brands suffer when credibility takes a hit and loyalty weakens. And perhaps most damaging of all, the AI industry risks being dismissed as hype, as inflated promises drown out genuine progress.

Responsible AI branding

Avoiding AI-washing requires discipline. The guiding principle is simple: don’t use the word ‘AI’ unless it truly applies.

Rule-based workflows, macros, or basic analytics do not qualify. Every claim must be grounded in fact and supported by evidence.

If an AI tool improves efficiency by 20%, say so. Don’t inflate it into ‘revolutionary transformation’.

When we launched enterprise solutions in compliance management and forecasting, for example, we deliberately avoided sweeping promises. Instead, we anchored our messaging in measurable results—from percentage improvements in accuracy to time savings in audits. We highlighted context-specific outcomes, ensuring clients and media could see tangible proof.

That precision, more than hyperbole, earned credibility and trust. The message is clear: exaggeration might earn headlines, but accuracy builds confidence.

Building a framework of authenticity

For brands seeking to stay credible in the AI era, a framework of authenticity is needed. Three principles stand out.

First, evidence first: every claim must be supported by case studies, client references, or validated numbers. Second, clarity over complexity: explain what the AI does in plain language rather than dressing up basic automation as machine learning. Third, educate rather than exaggerate: use brand platforms to raise awareness about AI’s real potential, not inflate expectations.

These practices may not always grab the flashiest headlines. But they lay the foundation for lasting trust.

This mirrors the evolution of sustainability communication. Early ‘green’ claims gave way to measurable ESG outcomes. AI branding, too, must evolve from loose marketing gloss to provable performance.

A shared responsibility

Marketers cannot shoulder this burden alone. Trade media, industry bodies and regulators also have critical roles to play.

Publications can scrutinise AI claims more closely. Industry groups can set frameworks for responsible communication.

Regulators can encourage transparency in disclosures. Together, these players can help separate hype from substance and ensure that the AI story in India develops with integrity.

The pressure on marketers will only increase as AI adoption accelerates. Meetings, events and activations are already the single largest line item in several industries’ marketing budgets, creating pressure to demonstrate differentiation. The temptation to over-claim will grow, but so will the risk of being exposed.

The future belongs to brands that treat AI not as a label but as a capability. The question every marketer must ask is: Is this claim a differentiator, or is it decoration?

India’s AI economy is still in its early chapters. If the ecosystem is flooded with inflated promises, the credibility of genuine progress may be compromised. But if marketers, agencies, media and regulators choose authenticity over hype, AI can mature into a force that reshapes industries and consumer behaviour in meaningful ways.

AI-washing might deliver attention today. But authenticity is what will build market leadership tomorrow. For India’s marketers, the choice is between chasing the gloss—or building the groundwork for trust.

- Kavita Rao, chief marketing officer, Findability Sciences