Abstract
As artificial intelligence (AI) becomes increasingly embedded in business operations, some firms engage in “AI-washing” by misrepresenting their AI usage. This paper explores the asymmetric effects of two types of AI-washing—deceptive boasting (falsely claiming to use AI) and deceptive denial (falsely denying AI use)—on consumer perceptions, attitudes, and purchase intentions. Across a 2×2 experimental design (N = 401), we find that deceptive denial significantly reduces purchase intention and increases perceived betrayal, while deceptive boasting has no such negative effects. A moderated mediation analysis confirms that consumer perceptions of betrayal drive these asymmetric effects. Theoretical and managerial implications are discussed.