The Securities and Exchange Commission (SEC) has taken action against companies engaging in what it terms as 'AI washing.' In a recent announcement, the agency disclosed that two investment advisers have agreed to pay substantial fines after being accused of making false and misleading statements regarding their utilization of artificial intelligence (AI). Delphia (USA) and Global Predictions, the firms in question, have settled with the SEC, with penalties amounting to $225,000 and $175,000, respectively.
SEC Chair Gary Gensler had previously cautioned investors about deceptive claims surrounding AI usage and highlighted the potential risks AI poses to financial stability. Gensler emphasized the need for transparency, stating that investment advisers should refrain from misleading the public by falsely claiming to employ AI models.
