Amazon and Walmart's AI Shopping Assistants Fail to Stop Falsely Labeled 'Made in USA' Products
A recent study by the Columbia Law School's Center for Law and the Economy has raised concerns about Amazon and Walmart's use of artificial intelligence (AI) shopping assistants. The researchers found that these AI tools, which are designed to help consumers shop, can often detect discrepancies in product listings that claim to be 'Made in USA' but are actually imported or manufactured abroad.
The study, titled 'Made in America, Hidden by AI: AI Shopping Chatbots Reveal How Amazon and Walmart Hurt American Manufacturers and Deceive Shoppers,' was published on Thursday. The researchers examined Amazon's Alexa for Shopping and Walmart's Sparky, testing their ability to identify inconsistencies between product listings.
The study found that both chatbots were generally capable of identifying discrepancies, but the companies are not deploying this capability to systematically crack down on misleading listings. This is despite the fact that the Federal Trade Commission (FTC) has urged Amazon and Walmart to do so, citing company policies requiring sellers to provide accurate information.
Amazon responded to these findings by stating that it takes action when sellers violate its marketplace policies, but also claimed that the report's broader conclusions about its use of AI in shopping are 'misguided.'