NAD accuses tech giants of exaggerating AI capabilities in advertising
The National Advertising Division (NAD) of the United States has reviewed the marketing materials of leading technology companies, including Apple, Google, Microsoft, and Samsung, and found that they exaggerated the capabilities or availability of their artificial intelligence (AI) features. As a result, these companies were forced to revise or withdraw their advertising claims. NAD has begun actively scrutinizing AI advertising because it is difficult for consumers to independently evaluate such claims.
In its investigation, NAD found that Apple had advertised unreleased AI features for the iPhone as "available now." After the review, Apple updated its website, clarifying that new Siri capabilities are in development. Google, for its part, removed a YouTube video where its Gemini assistant demonstrated capabilities that did not reflect the product's actual performance. Microsoft was forced to remove an ad claiming that its Copilot assistant "works seamlessly with all your data," while Samsung withdrew a statement that its AI refrigerator "automatically recognizes contents," as it was discovered that it recognizes only a limited number of products.
Marketing professor George Haidorfer stated that with the growing popularity of AI, consumers should expect a surge of questionable advertising. In his opinion, claims about product performance must be supported by facts, not just "catchy phrases." The U.S. Federal Trade Commission (FTC) is also conducting investigations in this sector, and as part of one campaign, a lawsuit was filed against a company that promised to generate income using an AI platform.
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