TLDR:
- Two investment firms are fined $400K by the SEC for false AI claims.
- The firms made misleading statements about their use of artificial intelligence.
Article Summary
The U.S. Securities and Exchange Commission (SEC) recently announced settlements totaling $400,000 with two investment advisors regarding false and misleading statements they made about their utilization of artificial intelligence (AI).
The SEC accused the firms of engaging in a practice known as “AI washing,” where companies exaggerate or misrepresent their use of AI technology in their operations.
The firms involved in the settlements were Delphia and Global Predictions. They were found to have falsely portrayed AI as a significant factor in their decision-making processes, despite limited actual use of AI technology.
As part of the settlements, both firms agreed to pay monetary penalties and to refrain from making misleading statements about their AI capabilities in the future.
This case highlights the SEC’s increasing scrutiny on companies making false or exaggerated claims about their technology capabilities, especially in the realm of AI.
