AI ‘Washers’ Can’t Exaggerate Their Way Out of This One
The collapse of a high-flying startup may signal a broader decline in the practice of secretly using humans behind the scenes in AI technology. Builder.ai, a British firm that raised $445 million from investors including Microsoft Corp. and SoftBank Group Corp., entered insolvency proceedings after a major creditor seized $37 million from its accounts, leaving just $5 million in the company’s coffers.
Former staff members told Bloomberg News that the company had been inflating its sales figures to investors, forcing it to lower its sales estimates in March. This revelation wasn’t the only indicator of potential deception – an investigation in 2019 revealed that Builder.ai’s core technology of building apps with artificial intelligence was primarily being done by software developers in Ukraine and India, rather than AI as claimed.
The case of Builder.ai is unusual not just because of its significant funding, but also due to the scale of its alleged misrepresentation. As the AI industry continues to evolve, the collapse of such high-profile startups may lead to increased scrutiny of others making similar claims about their use of AI technology.
