SEC Chair Cautions Companies Against Exaggerated AI Claims That Could Mislead Investors
• SEC chair warns companies against "AI-washing" - making hyped-up, potentially misleading claims about their use of AI to attract investors • Such false claims about AI could violate securities laws and harm investors, Gensler says • Instead of boilerplate language, companies should specifically disclose AI-related risks if AI is material to their business • Gensler highlights how existing laws can apply to AI, as other agencies like the FTC have done • SEC has authority to go after intentional securities fraud involving AI or advisers placing their interests ahead of clients'