Theranos and FTX were more than just scandals, they were wake-up calls. They exposed what happens when hype outweighs substance, leaving a trail of shattered trust and catastrophic loss. In 2025, artificial intelligence is at a similar crossroads. The gap between bold claims and actual capabilities has become impossible to ignore. If AI is to deliver on its transformative promise, the time has come to cut through the noise, demand accountability, and separate real breakthroughs from hype and fraud.
AI is everywhere. Otherwise, AI will have us believe it. From “AI-powered” marketing pitches to jargon-filled investor materials, artificial intelligence has become a badge every company wants to wear. But how much of it is real? On the surface, too many of these claims turn out to be smoke and mirrors. This year, consumers, investors and regulators need to step up and call out this charade. Without a collective commitment to transparency, trust will erode. When trust disappears, so does progress.
The promise of true AI is undeniable. Machine learning and natural language processing are reshaping industries in ways once thought impossible. In the medical field, algorithms enable early diagnosis of diseases such as cancer and diabetes, paving the way for more effective treatment. Logistics companies are using AI to optimize their supply chains, reduce waste, and reduce emissions. Education is changing as AI helps teachers personalize learning experiences and tailor instruction to the unique needs of every student. This is not a distant dream. It’s happening now, and it’s proof of what’s possible when AI is applied responsibly.
While AI continues to make real progress, the industry is facing a credibility crisis fueled by exaggerated claims. Some companies misrepresent their capabilities by branding basic automated or human-centered processes as “AI-driven.” This phenomenon, known as ‘AI washing’, has spelled disaster for the industry. Consider the example of a voicemail transcription service that claims to use advanced AI to convert speech to text. Our customers felt they were benefiting from cutting-edge machine learning. In reality, human workers were performing the transcription tasks manually. Although the service itself was not flawed, deceptive marketing undermined trust and devalued the very meaning of AI.
And it’s not an isolated problem. Across finance, retail and other sectors, companies are overvaluing their offerings. In the financial industry, some trading platforms are promoting ‘AI-based’ algorithms that are nothing more than basic statistical models. In retail, chatbots and platforms are sometimes marketed as intelligent systems when in reality they rely on pre-scripted human responses with minimal machine learning. This exaggeration not only harms the companies that create it, it undermines the credibility of the entire AI field.
When consumers are repeatedly exposed to products that fail to deliver on their promises, skepticism takes root. That skepticism is not limited to bad actors. That extends to legitimate innovators. Investors who cannot distinguish between hype and reality withdraw their funding. True innovation struggles to find the resources and credibility it needs to succeed. Meanwhile, the entire ecosystem suffers. In a dynamic and rapidly changing industry like AI, this erosion of trust is quickly becoming a crisis.
But it doesn’t have to be this way. The future of AI can still be bright if we act now. Solutions begin with accountability at all levels. Investors need to demand more than flashy black box presentations. Hard evidence, independent audits and rigorous technical review are required to verify claims and demonstrate technological authenticity and sustainable competitive advantage.
Regulators play an equally important role. Clear definitions and enforceable standards for qualifications in AI are long overdue. The Federal Trade Commission (FTC) must continue to crack down on deceptive claims and schemes to hold scammers accountable and dissuade others from following suit. Without these efforts, the term ‘AI’ will continue to be abused and its credibility will be further damaged.
Consumers also play an important role. By asking questions and demanding transparency, you can put pressure on companies to be honest about what their products can and cannot do. Simple questions like “How do these ‘AI-powered’ products actually work?” It can reveal whether companies are truly leveraging artificial intelligence or relying on underlying technologies disguised in AI jargon or human labor behind the scenes. When consumers praise transparency and punish deception, markets move toward honesty.
The stakes couldn’t be higher. AI is not just a technology trend. It has the potential to redefine industries, solve global challenges and improve lives around the world. Imagine a near future, a lifetime in which our healthcare system predicts and prevents disease before symptoms appear. Imagine a classroom where your child receives an individualized education that helps them grow regardless of their starting point. These possibilities are not science fiction. It’s within reach. But achieving this requires a foundation of trust built on transparency and integrity.
2025 will be the year that redefines AI, not as a buzzword or marketing gimmick, but as a tool with huge, measurable potential. This means celebrating companies that deliver real value while also exposing those hiding behind empty promises. This means creating an environment where honesty is not only encouraged but expected.
For businesses, this change is not just a moral imperative. It’s a survival strategy. In an age where consumers are more informed and investors are more cautious, transparency is no longer an option. Those who double down on empty promises will be left behind, while those who embrace transparency and accountability will lead.
AI will shape the future. There is no doubt about this. The real question is what kind of future that will be. Is it based on truth or hype? The answer depends on all of us. Investors, regulators, developers and consumers each have a role to play. Together we can ensure that artificial intelligence delivers on its promises through actions, not words.
Now is the time to act. Let’s make it a New Year’s resolution to make 2025 the year when AI is proven not as a marketing slogan but as a result.
