Why “AI-Powered” Isn’t Enough: Redactable’s CEO on the Dangers of AI Washing
Redactable provides a cloud-based platform that simplifies and secures the document redaction process, allowing users to permanently redact sensitive information from documents in just a few minutes.
In a fast-moving AI market, Redactable CEO Amanda Levay is calling on legal professionals to push for greater transparency. In her latest piece for Legal Reader, she warns that “AI-powered” should never be the end of the conversation—especially in law, finance, healthcare, and other high-stakes industries. Instead, it should be the start of real due diligence.
Her message is simple: inflated claims about AI capabilities—known as “AI washing”—aren’t just bad marketing. They’re a legal liability.
The Red Flags Behind “AI-Powered” Labels
The SEC has already started cracking down. In 2023, two investment advisors were fined $400,000 for misleading AI claims—proof that the gap between marketing and technical reality can come with serious consequences.
“Terms like ‘intelligent,’ ‘autonomous,’ or ‘human-level’ get thrown around with no explanation,” Levay writes. “Sometimes, with no product behind them at all.” In fields where accuracy is critical, that kind of exaggeration puts trust, compliance, and client data at risk. It’s why AI claims must be scrutinized with the same rigor as any other legal representation.
What AI Really Can (and Can’t) Do
Levay emphasizes that AI—particularly machine learning—can be incredibly powerful when used within defined parameters. In law, it’s being adopted for document summarization, case research, and redaction. But that doesn’t mean it’s infallible.
Without clear documentation and an understanding of how the system was trained or where it can fail, legal professionals are left guessing—and that can lead to real-world harm. “Being clear about what an AI system can’t do is just as important as what it can,” she notes. Transparency builds credibility, empowers users, and keeps sensitive data safe.
Setting a Higher Standard in Legal Tech
Levay argues that legal professionals are uniquely positioned to lead the charge. They’re trained to ask tough questions—and now, more than ever, those instincts are needed.
“If a tool relies on machine learning,” she writes, “it should come with documentation, explainability, and a clear scope of what it can (and can’t) do.”
The legal industry doesn’t need hype. It needs precision, explainability, and tools that solve specific problems without overselling capabilities. In a market increasingly saturated with buzzwords, Redactable is advocating for honesty—and setting a standard the industry can trust.
Read more on Legal Reader.
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