AI-washing: The Asymmetric Effects of Its Two Types on Consumer Moral Judgments

Abstract: As AI hype continues to grow, organizations face pressure to broadcast or downplay purported AI initiatives - even when contrary to truth. This paper introduces AI-washing as overstating (deceptive boasting) or understating (deceptive denial) a company's real AI usage. A 2x2 experiment (N = 401) examines how these false claims affect consumer attitudes and purchase intentions. Results reveal a pronounced asymmetry: deceptive denial evokes more negative moral judgments than honest negation, while deceptive boasting has no effects. We show that perceived betrayal mediates these outcomes. By clarifying how AI-washing erodes trust, the study highlights clear ethical implications for policymakers, marketers, and researchers striving for transparency.