Advertising Law Blog

Andrew Lustigman, Chair of Olshan's Advertising, Marketing & Promotions Group and Co-Chair of the firm’s Brand Management & Protection Group, and Olshan Intellectual Property and Brand Management & Protection partner Barry Greenbaum published an article in Corporate Compliance Insights entitled “Substantiate Your AI Claims Before They Become AI-Washing Challenges.” In the article, Andy and Barry discuss how companies can substantiate AI related marketing claims, reduce AI washing risk and maintain support for claims as models, datasets and vendor tools evolve. “Vendor claims should be verified before they are incorporated into the company’s own marketing or customer communications,” they write. “Contracts can help facilitate that process by requiring vendors to provide technical documentation, testing reports and notice of material changes.” The article recommends that companies define what their technology does, evaluate what reasonable customers understand AI-related terms to mean and ensure the evidence supporting a claim matches the promise being made. It also emphasizes coordinated review among legal, compliance, engineering and marketing teams. Organizations should maintain a current, periodically updated record that identifies each material claim, supporting evidence, limitations, responsible owner and review date. “The goal is not to require every communication to use identical language but to ensure that variations in messaging do not convey materially different impressions of what the technology can do,” Andy and Barry write. Companies that conduct final checks before approving AI claims are better positioned to build trust, manage regulatory exposure and preserve credibility.