Is Your Company Engaging in AI Washing? Insights from Rippling Founder Parker Conrad

Parker Conrad, founder of Rippling, a $13.5 billion HR startup, shared some intriguing thoughts on AI during a recent episode of our Found podcast.

“No one really wants to chat with their HR software beyond the novelty of it responding to them,” he remarked.

Conrad also believes that many software companies are incorporating superficial AI features that lack real utility into their products.

“There is a plethora of insubstantial AI features out there,” Conrad stated, expressing his underwhelmed sentiment towards the current state of AI technology. While acknowledging the transformative potential of AI, he noted his disappointment with the implementations he has encountered.

He understands the phenomenon of AI washing, where companies falsely claim to utilize AI significantly in their products. Conrad pointed out the industry's rush to leverage AI, stating that many are eager to add AI elements to their products for increased valuation.

His perception aligns with the trends in the industry, with AI companies accounting for a substantial portion of US deal value. AI and machine learning companies raised $38.6 billion out of the total $93.4 billion invested in US startups in the first half of the year.

While industry experts like Nekeshia Woods anticipate AI's growing role in automating tasks and enhancing consumer experiences, Conrad remains a public skeptic, particularly regarding AI agents. He believes that AI's value lies in its ability to process vast amounts of unstructured data to provide valuable insights for businesses.

Despite the growing investment in AI and ongoing discussions surrounding its potential, Conrad remains cautious about the path forward, acknowledging the uncertainties surrounding AI's impact and the need for substantial returns on investment in the technology.

“It’s challenging to predict the outcomes at this point,” Conrad reflected.