SEC Cracks Down on 'AI Washing,' Fines Firms $400M for False Claims About AI Capabilities
• SEC warned about "AI washing" - falsely claiming AI capabilities • SEC fined two investment firms $400M for making false AI claims • U.S. attorney said will target startups making false AI claims to defraud investors • Regulators looking closer at booming VC world after recent high-profile collapses • Intersection of AI and healthcare exploding - large funding rounds for AI healthcare startups