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SEC fines two investment advisers over AI claims
The U.S. Securities and Exchange Commission announced on Monday that two investment advisers have reached settlements involving penalties to resolve charges of making false and misleading statements regarding their use of artificial intelligence (AI).
Delphia Inc, headquartered in Toronto, and Global Predictions Inc, based in San Francisco, neither admitted nor denied the SEC’s allegations but agreed to collectively pay fines totaling $400,000 to settle the civil charges related to what is termed as “AI washing,” as per the SEC’s statement.
This term refers to the misleading portrayal of the extent or effectiveness of AI utilization, Reuters reported.
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