The U.S. Securities and Exchange Commission this week said it settled charges against two investment advisers related to “AI washing.”
The firms, Delphia Inc. and Global Predictions Inc, will pay a total of $400,000 in civil penalties for making false and misleading statements about their use of artificial intelligence (AI).
“We find that Delphia and Global Predictions marketed to their clients and prospective clients that they were using AI in certain ways when, in fact, they were not,” said SEC Chair Gary Gensler, in a statement. “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. Investment advisers should not mislead the public by saying they are using an AI model when they are not. Such AI washing hurts investors.”
