In a sweep of 17 companies, the Ontario Securities Commission (OSC) found examples of so-called “AI washing” that inaccurately implied a firm’s use of the technology gives it a competitive advantage. Examples included unsubstantiated assertions that an AI tool is the “best of,” and claims that exaggerated an AI system’s accuracy for predicting market events. (The Logic)

Talking point: At The Logic Summit earlier this month, OSC CEO Grant Vingoe said the regulator is taking a wait-and-see approach to AI in capital markets, examining how the industry is using the technology before deciding on the best approach to regulating it. In 2024, the U.S. Securities and Exchange Commission charged Toronto fintech Delphia and another San Francisco company with making misleading statements about their use of AI, part of a campaign to crack down on AI washing. OSC spokesperson Curtis Lindsay said he was unable to disclose how many firms the regulator found engaged in AI washing, who they are and whether they will face enforcement action “to protect the integrity and fairness of any matters that may be under review.”

Update: This briefing was updated to include comment from the OSC.

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