If an investor or a journalist asked you to prove the AI claim on your homepage, could you?
Research from MMC Ventures found that 40% of companies labelled "AI startups" in Europe showed no real evidence that AI was material to their business at all. The label was marketing, not fact.
That gap has a name now: AI-washing, sometimes written AI washing. It means a company overstates what its AI actually does, or how central it is to the business. Regulators have started to treat it as misrepresentation: in March 2024 the US SEC settled its first AI-washing cases, against two investment advisers, Delphia and Global Predictions, with combined penalties of $400,000 (SEC press release). Investors, boards, and increasingly journalists now check for it before they take a growth story at face value.
This audit does that checking in advance: a plain read of what your product, marketing, and GTM claims actually say about AI, against what's really happening underneath.
How This Works
This sits next to the newsletter work I do on the same topic, The Silent Noise has an issue planned that looks at how easy it's become to spot a hollow "AI-native" resume claim from the hiring side. This audit is the same lens, turned on a company's own claims instead.
It also runs as a standard check inside my GTM Due Diligence for Investors work, for any target company whose pitch leans on an AI narrative. As a standalone service, it's for a company that wants that same check run on itself, before someone else runs it for them.
your growth story leans on an AI claim, and you want it checked before an investor, acquirer, or reporter does.
you need the AI itself built or audited for technical performance. This checks what's claimed against what's real, not model accuracy or infrastructure.
Frequently Asked
Worth Knowing
“40% of companies labelled 'AI startups' in Europe showed no real evidence that AI was material to their business.”
The label was marketing, not fact, and the gap now has its own name: AI-washing. It's exactly what investors, boards, and increasingly reporters are starting to check for.
Source: MMC Ventures, "The State of AI 2019: Divergence"
Get In Touch
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higaurav@gauravbhattnagar.com