AI-washing: The Asymmetric Effects of Its Two Types on Consumer Moral Judgments

2025/07/06 by Nyilasy, Greg, Gangadharbatla, Harsha
#Artificial Intelligence (cs.AI) #Computers and Society (cs.CY) #FOS: Computer and information sciences #Human-Computer Interaction (cs.HC)

paper · doi:10.48550/arxiv.2507.04352

Abstract

As AI hype continues to grow, organizations face pressure to broadcast or downplay purported AI initiatives - even when contrary to truth. This paper introduces AI-washing as overstating (deceptive boasting) or understating (deceptive denial) a company's real AI usage. A 2x2 experiment (N = 401) examines how these false claims affect consumer attitudes and purchase intentions. Results reveal a pronounced asymmetry: deceptive denial evokes more negative moral judgments than honest negation, while deceptive boasting has no effects. We show that perceived betrayal mediates these outcomes. By clarifying how AI-washing erodes trust, the study highlights clear ethical implications for policymakers, marketers, and researchers striving for transparency.

Citations

• A systematic review of algorithm aversion in augmented decision making
• Why Ethical Consumers Don’t Walk Their Talk: Towards a Framework for Understanding the Gap Between the Ethical Purchase Intentions and Actual Buying Behaviour of Ethically Minded Consumers

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