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Fortune
Fortune
Chris Morris

A tech CEO has been charged with fraud for saying his e-commerce startup was powered by AI, when it was actually just using manual human labor

(Credit: Kuni Takahashi/Bloomberg via Getty Images)
  • The Justice Department has accused the former CEO of shopping startup Nate with fraud. Albert Saniger has been indicted and is accused of using human labor, but telling investors and customers the work was done with artificial intelligence.

Startup tech company Nate promised consumers easier shopping with the help of artificial intelligence. But the Justice Department says there was no miracle tech behind the checkout app's transactions. Instead, they were handled by humans in the Philippines and Romania.

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