AI & Innovation’s Record-Breaking Boom

You’ve probably had that weird moment online when you’re chatting with what seems like a real person. Its only to realize it’s actually a bot. And while ChatGPT and similar AI tools have recently made talking to bots feel more normal, the truth is, bots have been around for decades. Back in 1966, MIT created one of the first ones called ELIZA, which was built to mimic human conversation. Then in the ’90s, Microsoft introduced us to Clippy—the little paperclip assistant that popped up in Word to offer help (and occasionally annoy us). But bots haven’t always been so harmless. By 2016, especially during the U.S. election season, social media platforms like Twitter were crawling with fake accounts spreading misinformation and stirring chaos. We’ve come a long way—but the line between human and machine is still blurring fast. AI & Innovation’s Record.

Bots haven’t gone anywhere—in fact, they’re more active than ever. These software programs, designed to carry out repetitive tasks automatically, continue to flood the internet and play a major role in the ongoing AI revolution. But their growing presence is shaking up the online world in unexpected ways, potentially changing the internet as we’ve known it since the 1990s.

One major concern? Bots aren’t just messing with website traffic—they could be artificially inflating the digital economy. The very numbers used to measure online success and determine tech company valuations are being skewed. In 2024, bots officially outpaced human users in generating web traffic, according to data from Imperva, a cybersecurity company under Thales. Their annual “Bad Bot Report” revealed that nearly half of all internet activity now comes from automated sources. Around 20% of that is from “bad bots” involved in harmful or deceptive behavior.

Imagine pouring your heart, time, and money into digital marketing—only to discover that a big chunk of your traffic isn’t even human. That’s the reality many businesses face today, thanks to bots silently inflating numbers across the internet. These automated programs don’t just lurk in the background; they actively mimic user behavior—racking up fake pageviews, bogus clicks, and empty user sessions. All of this gives websites an illusion of growth, skewing critical performance metrics like conversion rates and session durations.

It gets worse. Cybersecurity experts—who, yes, have their own interests—warn that ad fraud bots are draining billions globally. These bots click on paid ads and generate false engagement, forcing companies to spend real money on what’s essentially smoke and mirrors. It’s a modern heist: businesses are paying for attention they never actually received.

And the deception doesn’t stop with advertisers. Many startups proudly highlight “vanity metrics” such as user sign-ups or app downloads—figures that bots can easily inflate. Founders often use these unverified numbers to persuade investors that their company is thriving. But if those numbers don’t reflect real people, they don’t reflect real value.

Ripple effect- AI & Innovation’s Record

Now think about the ripple effect. Investors, driven by these pumped-up metrics, pour money into startups that look explosive on paper but may be hollow underneath. It’s a troubling scenario—one that economists are starting to connect to something bigger.

Torsten Slok, chief economist at Apollo Global Management, recently dropped a bombshell: the top tech companies today may be even more overvalued than those during the dot-com bubble. He didn’t name bots specifically, but the implication is chilling. If the current AI boom is being propped up by artificial traffic and inflated metrics, are we heading toward another crash?

This isn’t just a technical problem; it’s a financial and cultural one. As excitement around AI and tech innovation reaches fever pitch, investors are chasing growth at breakneck speed. The result? A market that feels eerily like the late ’90s—buzzing with promise, but potentially untethered from reality.

Take the rise of “unicorns,” for example—private companies valued at over $1 billion. What was once a rare achievement has become commonplace. Back in 2013, the term was coined to describe a near-mythical status. By 2025, there were over 1,200 unicorns, many of them born in times of cheap capital and speculative investing. Now, with venture money flowing heavily into AI, history seems to be repeating itself—with bots helping inflate the hype.

Eventually, the truth has a way of catching up. When investors start to realize that the glowing metrics are powered by scripts and not people, the tide could turn fast. There’s already growing pressure for transparency, and some regulators are starting to crack down on bot-driven manipulation.

If we’re not careful, the AI revolution could stumble under the weight of its own hype. Real progress must be built on trust, not just traffic. And it’s high time we ask: who—or what—is really behind the clicks?

Government- AI & Innovation’s Record

Governments are now stepping in to tackle the rising influence of bots across the internet, especially as they continue to shape our online shopping habits, social media interactions, and even public opinion. While bots can offer genuine value—like helping with customer support or streamlining services—they’re also being used for darker purposes. Spreading false information, posting fake reviews, hoarding concert or event tickets, and manipulating what people see and believe online.

Federal Trade Commission (FTC)- AI & Innovation’s Record

In the U.S., the Federal Trade Commission (FTC) is leading the charge to keep things in check. This agency focuses on identifying and curbing deceptive practices, particularly those that affect consumers. In fact, in 2024, the FTC introduced a landmark rule that bans the use of fake or AI-generated reviews and testimonials. This regulation applies to both conventional bots and more advanced AI tools that create misleading content or endorsements. Helping to ensure that what you see online is more trustworthy.

Regulators can now hold companies legally accountable if they buy, sell, or spread fake reviews—whether written by people or generated by bots. These civil penalties are part of a broader push to clean up the online marketplace, making it more honest and transparent for consumers.

Congress passed the Better Online Ticket Sales (BOTS) Act in 2016 and strengthened it in 2025 with a presidential executive order. This law directly targets automated bots that cheat the system by snapping up tickets for live events like concerts and sports. Scalpers use these bots to grab huge numbers of tickets within seconds, leaving real fans empty-handed and frustrated. The FTC actively enforces the law, which gained widespread attention after the chaos surrounding Taylor Swift’s sold-out Eras Tour—when bots instantly scooped up tickets before fans had a chance. Many have even dubbed it the “Taylor Swift Law.”

The FTC actively holds businesses accountable for being honest about their use of AI tools, including chatbots and digital avatars. They’ve issued multiple warnings advising companies to clearly disclose when people are interacting with a bot. To avoid exaggerating what their AI tools can actually do, and to never use bots to trick or mislead consumers.

At the state level, places like California have taken things a step further by passing laws that require bots to identify themselves. When engaging with users in a way that might influence their decisions—whether it’s shopping or even voting. Other states are now following suit, proposing their own versions of California’s “Bolstering Online Transparency Act.” Still, the challenge remains: how to effectively regulate these bots across state lines and on a national scale.

What to Keep an Eye On- AI & Innovation’s Record

As the truth about bot-inflated web traffic becomes clearer, some companies could be in for a reality check. If businesses can’t back up their impressive user stats with genuine, human activity, their market value might take a hit. We may start to see a shift, with more investment and trust going to companies that show real engagement. Consistent growth from actual users—not just numbers padded by bots.

Because of this, there will likely be a stronger push for independent verification of online metrics. Expect analytics platforms to ramp up efforts in detecting and filtering out. Bot activity so brands and advertisers get a more accurate picture of who’s really interacting with their content.

That said, bots aren’t going anywhere. They’ve been part of the digital world for over 50 years, and their presence is only growing. At this point, inflated stats from bots might simply be something the internet has to learn to live with. Just another layer of the online experience.