A U.S. company was exposed for faking AI automation by relying on Filipino workers.
Albert Saniger, former CEO of Nate, Inc., is facing legal trouble for misleading investors about his company’s use of artificial intelligence (AI). He raised over $40 million by claiming that the Nate app could automatically complete online purchases. However, investigators found that the company depended on manual labor, mostly from workers in the Philippines.
Instead of AI handling transactions, hundreds of Filipino workers manually processed user orders. Despite this, Saniger told employees to keep the truth a secret, calling automation data a “trade secret.”
Authorities say this deception hurt investors and slowed down real AI advancements. Acting U.S. Attorney Matthew Podolsky warned that false AI claims make people doubt real technological progress. The FBI also criticized Saniger, saying his actions could damage trust in startups.
This case serves as a warning for investors and tech companies. As AI technology continues to grow, people should watch out for false promises and ensure transparency in business.
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