Remember when every product was "cloud-enabled"? Now everything is "AI-powered," and investors have learned absolutely nothing.

Peloton is cutting hundreds of jobs — 11% of their workforce — just months after launching new AI-powered fitness equipment. The timing raises an obvious question: were the AI features genuine innovation, or just marketing gloss on a struggling business model?

This is AI-washing in its purest form: using buzzwords to distract from fundamental business problems.

Here's what happened. Peloton announced AI-enhanced hardware with features like personalized workout recommendations and form correction. They did a press tour. Tech blogs covered it. Investors nodded approvingly. Then, a few months later, they laid off over a tenth of their workforce.

The technology might be real. The business case clearly wasn't.

Let's be honest about what "AI-powered" means in this context. It's mostly recommendation algorithms — the same kind Netflix has been using for over a decade — paired with computer vision for form analysis. Useful features? Sure. Revolutionary? No. Worth building a marketing campaign around while your core business is struggling? Apparently not.

Peloton's fundamental problem has nothing to do with whether their bike can tell you to adjust your seat height. Their problem is that they sold expensive hardware during a pandemic when everyone was stuck at home, and now those customers don't need another bike. AI doesn't fix that.

But "AI" sounds innovative. It sounds like growth. It sounds like the kind of thing that justifies a premium price point and makes investors forget about declining subscriber numbers.

I've seen this playbook before. In 2010, every failing company pivoted to mobile. In 2015, it was blockchain. In 2020, it was pandemic-related pivots. Now it's AI. The pattern is always the same: slap the current buzzword on your existing product, hope it buys you another funding round, then quietly lay people off when it doesn't work.

The real tell is the timing. If AI features were driving growth, you'd hire more people to build on that momentum. You don't cut 11% of your staff months after a successful product launch. You cut 11% of your staff when you're trying to survive long enough to figure out what comes next.

Here's what frustrates me: there are legitimate uses of AI in fitness. Computer vision that can analyze your running form and prevent injuries? That's real. Models that can adjust workout intensity based on biometric feedback? That's useful. Personalized training plans that adapt to your progress? That has value.

But when you're announcing AI features while preparing mass layoffs, it's hard to believe any of it is genuine innovation. It looks like desperation dressed up in buzzwords.

The technology is real. The business case wasn't. And 11% of Peloton's employees are paying the price for that gap.