The startup has promised that AI assistants will build the app. However, this work was actually carried out by human engineers.
Builder.ai, a Microsoft-backed startup, has pitched itself as an AI-powered method of simplifying app development. The client chatted with Natasha, the platform's signature AI assistant, and received a functional, AI-generated app based on the information provided. But instead of using AI technology to run chatbots and create apps, the company hired 700 engineers in India to possibly as Natasha in conversations with clients, and did the actual code of the app.
The company's human-run chatbot operation is part of the bigger problem in today's tech industry. The problem called “AI-Washing” comes when tech companies claim that tools use far more amounts than they actually are. It happens surprisingly often, like when Coca-Cola claimed that the 2023 product Y3000 Zero Sugar was co-created with AI, but it has been speculated that it is designed to gain more attention and interest from consumers, as it did not provide details about how AI was actually involved in creating the product.
As companies are in a hurry to incorporate AI into their products, it gives the impression that at least they are doing so – consumers may not share the tech sector's free enthusiasm for all of AI.
Masculine light speed
The Pew Research Center reports that 43% of respondents believe AI will harm them. Furthermore, “public optimism is low regarding the impact of AI on work,” reads Pew Report. “73 [percent]Of the AI experts surveyed, AI says it will have a very or slightly positive impact on the way people do their jobs over the next 20 years. [percent] According to another survey, about half of all respondents said they would rather talk to real people about AI, compared to only 12% of respondents who said they prefer to talk to AI chatbots. A quarter of respondents said it was situation dependent.
However, washing AI was not a problem that bothered Builder.ai. According to the Latin Times, lenders seized $37 million from the company after discovering that they generated just $50 million in revenue. Linas Beliūnas accused Builder.ai of scams in a LinkedIn post, writing, “The company turns out to be a group of Indian developers who have no AI and are pretending to write code as AI instead.” A former employee sued the company, Business Standard reported. The audit seized millions of people from the company. Now it owes $85 million to Amazon and $30 million to cloud services it never paid.
The company filed for bankruptcy in the UK, India and the US in a LinkedIn statement. Builder.Ai writes, “We will enter into bankruptcy proceedings and appoint an administrator to manage the company's problems.”
“Despite the tireless efforts of the current team and exploring all possible options, the business has not been able to recover from historical challenges or past decisions.
topic
artificial intelligence
