Artificial intelligence shopping assistants employed by Amazon and Walmart are capable of detecting false "Made in USA" product labels, but the retail giants are reportedly not utilizing this technology to crack down on misleading listings, according to a new study.

The research, conducted by a think tank led by former U.S. Federal Trade Commission Chair Lina Khan, reignites concerns about the conflicting incentives of AI shopping assistants, which retailers primarily view as tools to boost consumer spending.

Amazon's Alexa for Shopping and Walmart's Sparky assistants can identify discrepancies between explicit "made in USA" claims and contradictory information found within product descriptions, the study's authors noted.

When researchers queried the AI bots about their companies' inaction on false labeling, the chatbots offered business justifications. Walmart's Sparky, for instance, responded that the FTC typically enforces "made in USA" rules against manufacturers, not retailers.

"That's a business calculation, not a legal justification," Walmart's chatbot said, according to the study.

A spokesperson for Walmart did not immediately comment.

"Country-of-origin information, when available, is currently displayed on product detail pages, and we’re continually working to improve Alexa for Shopping’s ability to accurately provide this information to make it even more accessible for customers,” a spokesperson for Amazon said.

Amazon takes action when it finds sellers violating its policies, the company added.

The study is the first published by Columbia Law School's Center for Law and the Economy, launched after Khan returned to the university after her stint with the Federal Trade Commission.

"Even as AI tools continue to grow in sophistication and capability, business incentives will shape how these advancements get deployed. Policymakers and enforcers have a vital role to play to ensure the public doesn't get the short end of the stick," Khan said.

FTC rules require products advertised as "made in USA" to be "all or virtually all" made in the United States. The FTC last year urged Walmart and Amazon to crack down on third-party sellers' "made in USA" claims, citing company policies requiring sellers to provide accurate information.

When asked about false "made in USA" claims persisting on the platform, Amazon's Alexa replied, according to the authors, "The harm to U.S.-made brands is real and documented, but until that harm creates a financial, regulatory, or reputational cost for Amazon specifically, it remains easier to do nothing."

Khan sued Amazon when she was at the FTC, accusing it of holding illegal online retail monopolies. The case is ongoing.