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'AI washing': firms are scrambling to rebrand themselves as tech-focused

theguardian.com

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Re: 'AI washing': firms are scrambling to rebrand themselves as tech-focused

#12

Post by newaccountman2 »

solenoid0937 wrote: post #2

I'd love to read the mind of an investor that actually falls for this shit. Who actually thinks that Allbirds will see much higher returns because they "have an AI graphics division?" I like AI, but seriously, who actually invests on this basis? Where is the critical thinking? I don't feel sympathy for any investor that gets rug pulled on this stuff.

https://youtu.be/oVItKzP6IBY

Re: 'AI washing': firms are scrambling to rebrand themselves as tech-focused

#13

Post by root_axis »

jamwise wrote: post #11

My favourite is Allbirds that pivoted from eco friendly shoes to AI infrastructure. How do you even make that decision?

It's not really a pivot though, is it? As I understand it, the company went bust and sold their branding to a different company that wants to do AI infra.

Re: 'AI washing': firms are scrambling to rebrand themselves as tech-focused

#16

Post by tokai »

somewhatgoated wrote: post #7
enraged_camel wrote: post #3

Earlier quoted context omitted.

A lot of it is prisoner's dilemma and its variants. As an investor, even if you think a particular AI shift is bullshit, you have to take into account the possibility that other investors won't - and at that point you might miss out on the gains. This is one of the reasons stock market is so disconnected from reality.

But wouldn’t it be a failure if it’s bullshit and therefore no gains?

Not if you sell before the other fools.

Re: 'AI washing': firms are scrambling to rebrand themselves as tech-focused

#17

Post by SpicyLemonZest »

somewhatgoated wrote: post #7
enraged_camel wrote: post #3

Earlier quoted context omitted.

A lot of it is prisoner's dilemma and its variants. As an investor, even if you think a particular AI shift is bullshit, you have to take into account the possibility that other investors won't - and at that point you might miss out on the gains. This is one of the reasons stock market is so disconnected from reality.

But wouldn’t it be a failure if it’s bullshit and therefore no gains?

A16Z's post on the Slack IPO (https://a16z.com/announcement/slack/) is a good pointer to the kind of thinking here. A pivot from an unprofitable game to laying off 80% of the company to a weird communication app could be fairly described as "bullshit", but when your business model is finding the rare exceptions where the stars align and a company ends up being worth billions, it's not a kind of bullshit you can afford to be entirely unreceptive to.

Re: 'AI washing': firms are scrambling to rebrand themselves as tech-focused

#18

Post by rich_sasha »

solenoid0937 wrote: post #2

I'd love to read the mind of an investor that actually falls for this shit. Who actually thinks that Allbirds will see much higher returns because they "have an AI graphics division?" I like AI, but seriously, who actually invests on this basis? Where is the critical thinking? I don't feel sympathy for any investor that gets rug pulled on this stuff.

Or just investment quotas requiring AI in the portfolio. I suspect it's mostly this. Or getting included in more indices etc.

The more trendy boxes you tick, the broader the universe of people whose box you tick and who can thus invest.

Re: 'AI washing': firms are scrambling to rebrand themselves as tech-focused

#19

Post by halfcat »

There was a line in one of The Walking Dead TV show spin-offs, something like:

”I've known men who inspire fear. Do you know what they have in common? They never say how frightening they are.”

And here we are.

”I’ve known companies that work on AI. Do you know what they have in common?...”

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