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Fintech Founder Charged With Fraud After 'AI' Shopping App Found To Be Powered By Humans in the Philippines


Albert Saniger, the founder and former CEO of Nate, an AI shopping app that promised a "universal" checkout experience, was charged with defrauding investors on Wednesday, according to a press release from the U.S. Department of Justice. From a report: Founded in 2018, Nate raised over $50 million f...

Albert Saniger, the founder and former CEO of Nate, an AI shopping app that promised a "universal" checkout experience, was charged with defrauding investors on Wednesday, according to a press release from the U.S. Department of Justice. In reality, however, Nate relied heavily on hundreds of human contractors in a call center in the Philippines to manually complete those purchases, the DOJ's Southern District of New York alleges. But despite Nate acquiring some AI technology and hiring data scientists, its app's actual automation rate was effectively 0%, the DOJ claims.

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