Allbirds cross-industry AI sparks market skepticism: industry warns investors to beware of "AI whitening" risks

Deep Tide TechFlow News, April 16, according to Marketwatch, reports that “tech guy sneakers” Allbirds announced this week it has reached an agreement for a $50 million convertible bond financing to fund an AI transformation, which sent its stock price soaring, but multiple industry insiders issued warnings:

FifthVantage CEO Matt Domo said that Allbirds’ AI transformation this time is more like a means of propping up a weak stock price, and investors should be wary of the “AI washing” phenomenon—when some companies try to exaggerate, or even fabricate, their AI capabilities for marketing purposes. In addition, the notion that companies also try to seize popular trends through aggressive transformation is not without precedent; in late 2017 through early 2018, many companies tried to jump on the blockchain bandwagon.

Jason Schloetzer, associate professor at Georgetown University’s McDonough School of Business, pointed out that this initial $50 million financing is “insignificant compared with the actual investment required to become such a service provider,” but from a more optimistic perspective, the influx of many new players into the AI field may also reflect the market’s “continued enthusiasm” for growth.