AI washing poses legal risks as companies exaggerate AI capabilities amid vague definitions in the EU's AI Act. Legal clarity is essential but increases scrutiny, with potential penalties for false claims. Companies face liability for misleading assertions to investors and customers. Developing accurate communications and verifying AI claims are crucial to mitigate legal repercussions.
https://www.clydeco.com/en/insights/2025/05/the-fine-print-of-ai-hype-the-legal-risks-of-ai-wa