One of the biggest scandals of recent years in the world of artificial intelligence has emerged. It was understood that the system marketed as an artificial intelligence product by the startup called Builder.ai, which received an investment of $455 million from Microsoft in 2023 and reached a valuation of $1.5 billion, was actually people behind it.

There were people behind Builder.ai’s artificial intelligence system

It was determined that the claims that the system called Natasha, which the company introduced as a “revolutionary artificial intelligence”, was completely autonomous were not true. The UK-based startup’s cover was revealed by a detailed examination of internal correspondence and financial records.

The documents show that Builder.ai employed hundreds of software developers in India and that these people produced software on behalf of Natasha and communicated directly with customers. Apparently, these software developers were asked to correspond with users and respond as if they were an artificial intelligence.

When it was understood that Builder.ai had been deceiving investors for years with human power under the name of artificial intelligence, the company’s reputation quickly collapsed. Following the scandal, the company filed for bankruptcy this week. One of the most striking points of the incident was the high-value investment made by Microsoft.

The American technology giant was planning to integrate Builder.ai’s technology into its own Azure platform. However, these plans were completely dashed when it was understood that the technological capabilities promised by Builder.ai did not actually exist.

This fraud case brought the intense interest in the field of artificial intelligence and the problem of lack of regulation that came with it back to the agenda. So what do you think about this issue? You can share your views with us in the comments section below.