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"The only way you can compete with fraud is you let people know it's fraud," he tells me."And it happens across the industry."Conru and AFF's CEO, Jon Buckheit, another Stanford Ph."And our bots would kick ass."he fact that AI con artists are up to such tricks isn't surprising or new.But what's truly phenomenal is the durability of this online hustle, and the millions of saps still falling for it."A lot of people think this only happens to dumb people, and they can tell if they're talking to a bot," says Steve Baker, a lead investigator for the Federal Trade Commission tells me. The people running these scams are professionals, they do this for a living."The scam starts with creating a chat bot, which is easier than you'd think. The Artificial Linguistic Internet Computer Entity, or ALICE, which generates scripts for chatterbots, has been around for decades.

Internal documents leaked during the Ashley Madison hack detail how, according to a 2013 email from managing director Keith Lalonde to then-CEO Noel Biderman, the company improved sex machine production for "building Angels enmass [sic]." This was done, Lalonde wrote, because the staff was getting "writers block when making them one at a time and were not being creative enough." (Reps for Ashley Madison did not return requests for comment).

"It's been a cat and mouse game for 20 years."And it's not a game he always wins.

The company suffered a massive hack that exposed the profiles of an estimated 3.5 million members — which generated international headlines by revealing high-profile kink-seekers on Capitol Hill, in Hollywood and higher education.

In 2012, Doriana Silva, a former Ashley Madison employee in Toronto, sued Avid Life Media for million complaining that she suffered from repetitive strain injury while creating over 1,000 sexbots — known within the company as "Ashley's Angels" — for the site.

The company countersued Silva, alleging that she absconded with confidential "work product and training materials," and posted pictures of her on a jet ski to suggest she wasn't so injured after all.