The U.S. Securities and Exchange Commission ordered the investment adviser’s U.S. unit to pay US$225,000 for making false and misleading statements about its use of AI. The regulator ordered San Francisco-based Global Predictions to pay US$175,000 for the same charges. Neither company has confirmed or denied the claims. (The Logic)
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The U.S. Securities and Exchange Commission ordered the investment adviser’s U.S. unit to pay US$225,000 for making false and misleading statements about its use of AI. The regulator ordered San Francisco-based Global Predictions to pay US$175,000 for the same charges. Neither company has confirmed or denied the claims. (The Logic)
Talking point: The SEC has been warning companies about making false claims about their use of AI and urging investors to protect themselves by reviewing firms’ disclosure documents. “AI washing hurts investors,” SEC chair Gary Gensler said in a statement Monday. “We’ve seen time and again that when new technologies come along, they can create buzz from investors as well as false claims by those purporting to use those new technologies.” While the fines against Delphia and Global Predictions are relatively small, they may serve as warning shots to companies that make AI claims and investors that believe them.
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