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Startup Reportedly Claimed Fake Clients as Its AI-Powered Sales Bot Flailed

Mar 30, 2025 - futurism.com
The article discusses the controversy surrounding 11x, a startup in the AI automation sector, which has been accused of unethical practices to attract investors. Despite being touted as a leader in AI-powered digital workers, 11x allegedly fabricated customer endorsements and manipulated financial data to appear more successful than it was. The company's AI sales robot, designed to automate tasks like phone calls and scheduling, reportedly suffered from significant issues, leading to a mass exodus of early adopters. Employees faced harsh working conditions, contributing to high turnover and dissatisfaction.

The situation with 11x highlights broader concerns about the current state of AI in the workplace, suggesting that the much-hyped AI revolution is more marketing than reality. Other AI products have also faced significant challenges, such as medical transcription AIs that hallucinate patient information and chatbots that create nonexistent policies. These incidents underscore the need for tech companies to address the practical limitations of AI before the hype fades.

Key takeaways:

  • AI startup 11x is accused of fabricating customer endorsements and manipulating financial data to appear more successful.
  • 11x's AI-powered sales robot reportedly suffers from issues like hallucinating client info and dropping meetings, leading to a high customer attrition rate.
  • Employees at 11x faced poor working conditions, including long hours and high pressure, resulting in burnout and high turnover.
  • The 11x situation highlights broader concerns about the current state of AI technology, which often fails to meet its revolutionary promises.
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