By Zoey
Artificial intelligence shopping assistants used by Amazon and Walmart appear capable of identifying products with potentially false “Made in USA” claims, but a new study says the retailers are not using that technology to systematically remove misleading listings from their online marketplaces.
The research, published by the Columbia Law School’s Center for Law and the Economy, examined the capabilities of Amazon’s Alexa for Shopping and Walmart’s AI shopping assistant Sparky. Researchers found that both systems were often able to recognize inconsistencies between product descriptions claiming American manufacturing and information suggesting the products were made overseas.
The findings raise questions about how major online retailers are using artificial intelligence tools and whether business considerations are preventing them from applying technology that could help consumers receive more accurate information.
Researchers argued that the issue is not a lack of technical ability but rather a matter of incentives. According to the study, Amazon and Walmart have access to AI systems capable of identifying questionable country-of-origin claims but have not broadly implemented those tools to review and correct marketplace listings.
The study was conducted by the Center for Law and the Economy, which is led by former Federal Trade Commission Chair Lina Khan. Researchers focused on whether AI shopping assistants could help identify potentially deceptive product information and whether those capabilities were being used to protect consumers.
For the study, researchers tested Amazon’s Alexa for Shopping and Walmart’s Sparky by asking questions about products advertised as being made in the United States. They compared the AI assistants’ responses with other available product details, including information indicating that some items were imported or manufactured outside the country.
The researchers found that the AI systems could often detect contradictions between marketing claims and other product information. The results suggested that retailers already have technology that could potentially identify questionable listings at a large scale.
However, the study concluded that neither company appears to be using those tools across their marketplaces to consistently identify and remove products with inaccurate “Made in USA” labels.
The researchers said misleading country-of-origin claims appear to be widespread on both platforms, creating challenges for consumers who want to purchase products manufactured domestically.
The study also raised concerns about how AI systems handle questions involving product origins. Researchers said Alexa sometimes blocked certain questions related to “Made in USA” products while allowing similar questions about products labeled as “Made in China.”
According to the report, Alexa’s different responses appeared to reflect a company decision rather than a technological limitation. Researchers argued that the way AI assistants respond to consumer questions may be influenced by marketplace priorities and relationships with sellers.
Amazon disputed the suggestion that it intentionally withholds information about where products are made. The company said it provides country-of-origin details when manufacturers or third-party sellers make that information available and said it continues to improve its AI shopping tools.
“We strive to provide customers with detailed information about products in our store, including where they are made when that information is provided to us by manufacturers or third-party sellers,” an Amazon spokesperson said. “The suggestion that we intentionally withhold country-of-origin information from customers is incorrect.”
Amazon said country-of-origin information, when available, is displayed on product pages and that the company is working to improve Alexa’s ability to provide customers with accurate product details.
The company also said it takes action against sellers who violate marketplace rules and rejected broader conclusions that Amazon is failing to use artificial intelligence responsibly.
Walmart did not immediately provide a public response regarding the findings.
The debate comes as retailers increasingly invest in AI-powered shopping assistants designed to help customers find products, compare options and make purchasing decisions. Companies have promoted these tools as a way to improve convenience and personalize online shopping experiences.
The Columbia study argues that as AI systems become more advanced, their use could also become an important part of consumer protection efforts. Researchers said retailers could use artificial intelligence not only to recommend products but also to identify inaccurate information and prevent misleading claims from reaching shoppers.
The issue is especially significant because federal regulations place strict requirements on products advertised as “Made in USA.” Federal Trade Commission rules state that products using that label must be “all or virtually all” made in the United States.
The Federal Trade Commission has previously urged major online marketplaces, including Amazon and Walmart, to take stronger action against inaccurate “Made in USA” claims made by third-party sellers. The agency has emphasized that companies have responsibilities to ensure sellers provide truthful information about their products.
Online marketplaces have faced growing scrutiny as millions of independent sellers use their platforms to reach consumers. Critics argue that the size and complexity of these marketplaces make it difficult for companies to monitor every listing, while others say advanced AI technology should make stronger oversight possible.
The study’s authors said the ability to detect false claims demonstrates that technology is available to address the problem. They argued that the remaining challenge is whether companies choose to prioritize enforcement and consumer protection.
As artificial intelligence continues to expand throughout online commerce, regulators, lawmakers and consumer advocates are likely to continue examining how companies use these systems and whether they are being deployed primarily to increase sales or also to improve transparency and accountability for shoppers.
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