Posted 3/18/2024, 9:38:32 PM
SEC Fines Two Firms $400K for Misleading Claims About AI Use
- The SEC fined two investment advisers, Delphia and Global Predictions, $400K total for "AI washing" - falsely claiming to use AI.
- Delphia will pay $225K and Global Predictions will pay $175K in civil penalties.
- The companies made inaccurate statements about using AI in their products and services when use was actually minimal.
- The SEC said the companies misled investors and violated rules against false advertising.
- The SEC warned investors to be cautious of potential investment fraud linked to claims about AI capabilities.