Attention, business owner: engaging in digital posturing can put an end to your business
The growing pressure to incorporate artificial intelligence and project an advanced technological image has spurred the proliferation of techwashing: pretending to have digital capabilities that a company does not actually possess. According to Cinco Días, this practice poses a growing risk in an environment where innovation has become a key competitive factor but also a marketing element used without sufficient technical or legal rigor.
The phenomenon is exacerbated when companies communicate the use of technologies—such as AI, automation, or advanced algorithms—without having verifiable evidence to support these messages. Recent reports warn that fewer than half of companies take real measures to avoid such practices, increasing their exposure to penalties for misleading advertising, contractual breaches, or violations of the Artificial Intelligence Regulation.
In this context, Juan Carlos Guerrero, partner in the TMT area of ECIJA, warns that one of the most concerning indicators appears when organizations use seals or certifications of “technological ethics” or “digital transparency” that have not been verified by independent third parties and that, moreover, are used to promote services without technical support. For the expert, prevention lies in a fundamental principle: “before communicating the use of artificial intelligence, algorithms, or automation, the company must internally verify that the technology exists and can be demonstrated.” He also recommends avoiding ambiguous messages and adopting audits that validate real compliance with legal and technical requirements.
Consulted specialists agree that, to avoid techwashing, companies must ensure coherence between their communication and their technological capabilities, strengthen internal controls, and demand verifiable technical documentation from suppliers. This is complemented by the importance of having qualified teams and training the governing bodies, as technological governance has become a strategic element for both competitiveness and the prevention of legal risks.
The consequences of falsifying or exaggerating digital capabilities can range from financial penalties—which, with the entry into force of the AI Regulation, can reach up to 35 million euros or 7% of global turnover—to profound and hardly reversible reputational damage. As experts point out, in an environment where clients, regulators, and investors demand transparency, the reputational impact of techwashing can be more severe than the penalties themselves.
Recent cases in the United States and Europe show that these practices are already reaching the courts under different legal figures, such as misleading advertising, unfair competition, or fraud. The trend points to an increase in litigation as technological regulation solidifies and oversight mechanisms potentially tighten.
Access the full news article published in Cinco Días here.
