Interactive Outfitters, LLC

The FTC is looking at “AI-Washing,” so make your claims bulletproof.

FTC and AI-washing

The gist.

  • “AI-washing” is when companies overstate or misrepresent what their AI can actually do — similar to “greenwashing” in sustainability claims.
  • The FTC has begun warning and taking action against marketers who make vague, exaggerated, or unsubstantiated AI claims.
  • For agencies, this means you need to ensure your own messaging and your clients’ messaging about AI is specific, honest, and backed up with evidence.

Why this matters for agencies.

  • You could be held responsible if you promote client claims that are misleading.
  • A single misleading statement can damage trust, spark negative press, and trigger regulatory scrutiny.
  • Clients will increasingly look to you for guidance on safe AI marketing language, making this an opportunity to be the trusted voice of reason.

How to fortify your AI claims.

  • Be specific — Explain exactly what AI does in your product or service (e.g., ”AI suggests email subject lines based on past open rates,“ not ”AI revolutionizes email marketing”).
  • Substantiate with proof — Have documented testing, data, or case studies that show the AI works as claimed.
  • Avoid absolutes — Don’t use ”100% accurate,“ ”guaranteed results,” or similar blanket promises.
  • Explain limitations — Tell people where AI might not perform perfectly and what safeguards are in place.
  • Keep a human in the loop — Show how humans review, approve, or override AI outputs.

Agency checklist.

  • Review all marketing materials, ads, and landing pages for AI-related language.
  • Ask clients to share their proof or testing for any AI claims and document it.
  • Create a shared “AI claims playbook” with example phrases to use and avoid.
  • Train account managers and copywriters on FTC guidelines and risk triggers.
  • Update contracts to clarify client responsibility for the accuracy of claims.

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