Summary
SEC charges two investment advisors for misleading statements about their use of artificial intelligence, known as “AI washing.” Delphia and Global Predictions agreed to settle charges and pay $400,000 in civil penalties. SEC warns against falsely claiming AI capabilities, comparing it to “greenwashing.” Gensler emphasizes the importance of truth in marketing AI services to investors.
Key Points
1. The U.S. Securities and Exchange Commission filed charges against two investment advisors for misleading statements related to the firm’s use of artificial intelligence.
2. The SEC charged the U.S. arm of Canadian company Delphia and U.S.-based Global Predictions with breaking regulatory marketing rules or “AI washing,” resulting in a total of $400,000 in civil penalties being paid by the companies.
3. SEC Chair Gary Gensler warned investors about the dangers of falsely or misleadingly labeling products or services with artificial intelligence capabilities, emphasizing the importance of truthfulness in communication with investors.