Albert Saniger, the founder of shopping app Nate, has been indicted for deceiving investors by falsely claiming that the app utilized advanced AI technology. Contrary to these assertions, the app was operated by call center workers in the Philippines who manually processed transactions. Saniger raised over $50 million based on misleading representations, despite the lack of functional AI capabilities. The case poses implications for other startups in the tech industry as trust becomes paramount in the digital economy. The Federal Trade Commission has also cautioned against exaggerated AI claims in business.