In my limited experience, I have seen lots of tech that doesn't work, or that is just some design mockups, marketed as a finished product, in particular in th AI space. I wouldn't call it fraud, so much as optimism or confidence, but there is definitely a dark side to this kind of practice.

If Theranos made an "AI" document analysis software that presently farmed out tasks to people behind the scenes because the tech didn't work yet, while simultaneously marketing it as AI, I dont think anyone would bat an eye.

The big difference I see is that this was in the medical space so it affects human health.