Allbirds’ 600% stock surge says a lot about how ‘AI washing’ became the new ‘greenwashing’

Across corporate earnings calls, investor presentations and marketing pitches, “artificial intelligence” has become the buzzword of choice. Yet a troubling pattern lies under the hype. Many claims vastly overstate actual AI sophistication, misleading people about true capabilities, future outcomes and potential harms. A case in point is the recent 600% share price surge of Allbirds, after the once-trendy sustainable footwear business issued a vague announcement in April 2026 that it would pivot to AI. In the coming months, the company plans to rename itself NewBird AI and give up its status as a public benefit corporation. As a scholar who studies corporate sustainability, I see parallels between this “AI washing” phenomenon – when companies oversell the benefits of AI while glossing over the risks – and the greenwashing trend in the recent past, when companies claimed to commit to sustainability but didn’t enact fundamental change. Widespread deception was rampant, with businesses spending far more on green marketing than on actual sustainability improvements. And those efforts often backfired on both the companies and the communities they served. Even more worrisome: AI washing’s rapid rise and widespread adoption will likely eclipse the greenwashing trends. How we got here AI washing is thriving because companies and policymakers ignore four important principles. These shortfalls, in the past, also characterized greenwashing. First, AI guidelines lack standardization. By 2019, 84 sets of AI ethics principles and guidelines had already been published. By 2023, this number had exploded to more than 200 – a mess of voluntary frameworks from companies, research institutions and public organizations. Making matters worse is that the U.S. currently relies on fragmented AI rules, with most being voluntary. The Trump administration has generally sided with Big Tech to push back efforts at state or federal regulation. At a global level, one of the few exceptions is the Eu