This chapter examines the Eliza Effect and how critics of Geoffrey Hinton, the so-called Godfather of AI, dismiss his warnings, believing him to be under the Eliza Effect. Eliza the chatbot, named after Shaw’s Eliza Doolittle in Pygmalion, was developed in 1964–1967 by Joseph Weizenbaum at MIT. It was one of the first chatterbots (nowadays chatbots) capable of attempting the Turing Test, which means that a machine can imitate human intelligence so well that a human judge cannot reliably distinguish it from a human during a text-based conversation. While there is yet no resolution to the debate as to whether or not Hinton is under the Eliza Effect, the problem is best examined by returning to the root of the term: Shaw’s Eliza Doolittle. From the perspective of her ‘trainer’ Henry Higgins, Eliza changes from inanimate squashed cabbage leaves to Duchess Eliza, passing the test at the ambassador’s garden party. She demonstrates three main qualities of AI LLMs that captivate the user: anthropomorphism, capability, and emotional engagement. However, the LLM found that the Pygmalion myth is similar to the Eliza Effect, with its human projecting real intelligence and emotion onto algorithm systems.