A US company was caught faking AI automated services through Filipino manpower. Nate, Inc. CEO Albert Saniger is currently under fire for misleading investors about how the company uses AI to operate.
For more context, he raised over USD 40 million by claiming the Nate app uses automation data to complete online purchases. Now, investigators have found out that the company actually uses manual labor from workers in the Philippines.
Hundreds of workers have tended to the app users’ orders instead of AI. Despite this, Saniger has told employees to keep this a secret. He has even said that their automation data is a “trade secret”.
Authorities have mentioned that this act hurt investors and slowed down real advancements in AI. In addition, acting US Attorney Matthew Podolsky issued a warning that false AI claims make people doubt technological progress.
Saniger has also been criticized by the FBI, saying his actions could damage trust in startups. Needless to say, this act of fraud works as a warning for both tech companies and investors.
While the rapid growth of AI is a promising prospect, people should still be wary. This case is a sign for companies to ensure that their programs work as intended to follow through with investors.
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