Artificial intelligence or artificial marketing? How to cut through the AI hype when browsing for products

Dr Wong Kin Yin, senior lecturer in marketing at Nanyang Business School in Nanyang Technological University, said that using the term "AI" may signal to consumers that the product “may be smarter or can perform a function in a better way”, thereby piquing consumers' interest.

When it comes to making inaccurate claims, Dr Samer Elhajjar from the National University of Singapore (NUS) Business School said that it might be due to a lack of understanding among the marketers or even within the companies themselves.

Others pointed out that to determine whether something is truly AI-driven or otherwise is “not always straightforward”.

For instance, Dr Sophia Wei from Nanyang Polytechnic said: “AI systems come in various levels of complexity, and interpretations of what counts as ‘AI’ can differ."

The course manager for the polytechnic's diploma in AI & data engineering added: “Most modern technologies today use at least some form of basic algorithms to detect patterns in data — and that is AI!”

Of course, it may also be the case of the companies exploiting the general lack of understanding of AI technologies among consumers.

HOW TO SAFEGUARD AGAINST 'AI-WASHING'

Having a basic grasp of what is AI — and what is not — would go a long way as well.

Dr Koh Noi Sian, senior lecturer at Nanyang Polytechnic for the diploma course in applied AI and analytics, outlined a few key characteristics to differentiate between AI and automation:

1. Adaptability and learning – AI-enabled products use machine learning to adapt and improve, while automated products follow predefined rules and provide standard solutions without adapting or making decisions.

2. Task complexity –  AI-powered products perform complex tasks such as understanding and interpreting natural language. Automated products handle simple, repetitive tasks.

3. Personalisation – AI-enabled products analyse user behaviour to offer personalised suggestions, such as streaming services that recommend content based on viewing history. Automated products provide one-size-fits-all solutions with little to no customisation.

5. Interaction and communication – AI-driven products engage in complex interactions. Automated products interact in straightforward, predefined ways — for example, an automated customer service phone line with pre-recorded responses based on menu selections.

Consumers who encounter advertisements that contain potentially misleading statements may log their feedback with the Advertising Standards Authority of Singapore (Asas), its chairman Bryan Tan told TODAY.

Consumers who encounter disputes over such products may also approach the Consumers Association of Singapore for help, he added.

At the end of the day, both AI and marketing experts advised customers to evaluate each product based on the functionality and how the function meets their needs, rather than focus on whether the function is powered by AI or other forms of technologies.

“Sometimes, a simple non-AI solution might work better than a complex AI one, and vice versa. It's all about finding the right tool for the job,” Dr Wei from Nanyang Polytechnic said.

UNETHICAL ADVERTISING

"Does such a claim make the item sound hi-tech? Yes. But as a consumer, you need to be savvy and learn more about it first."

To give feedback on false advertising, visit the website of the Advertising Standards Authority of Singapore.