AI shopping app found to be actually powered by Philippines call centre workers [Video]

A fintech founder in the US has been charged with fraud after it was found that his artificial intelligence shopping app relied heavily on Philippines call centre employees to complete the purchases manually.

Albert Saniger, the founder and former chief of the app, was charged with defrauding investors on Wednesday, according to the US Department of Justice.

The app Nate was founded in 2018 and raised more than $50m from investors, promising that thanks to AI, its users could buy from any e-commerce site with a single click.

However, an FBI investigation found that the company was “covertly employing personnel to satisfy the illusion of technological automation” in what it called a “scheme filled with smoke and mirrors”.

“Albert Saniger misled investors by exploiting the promise and allure of AI technology to build a false narrative about innovation that never existed,” acting US attorney Matthew Podolsky said.

“This type of deception not …