When does AI stop helping and start hustling you? In this episode of A Beginner’s Guide to AI, Professor Gephardt unpacks the FTC’s new “Luring Test”—a standard that exposes how algorithms can manipulate trust, exploit psychological shortcuts, and push people into harmful choices. From robot lawyers that weren’t really lawyers to AI tools generating fake reviews and e-commerce empires built on empty promises, we explore how regulators are cracking down on deceptive AI practices and dark patterns in AI design.

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As the FTC’s Operation AI Comply shows, slapping “AI-powered” on a product doesn’t give anyone a free pass to hype or mislead. The real challenge is drawing the line between AI personalisation and AI manipulation.

Key thought to keep in mind: “If an AI assistant would give a different recommendation were it truly acting in the user’s best interest—and the only reason it doesn’t is your revenue model—you’re not personalising; you’re luring.”

Whether you’re a marketer, entrepreneur, or curious listener, this episode will sharpen your eye for spotting when AI is serving you—and when it’s working you over.

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Music credit: "Modern Situations" by Unicorn Heads