Posted 3/18/2024, 8:34:53 PM
SEC Fines Two Firms $400K for False AI Claims
- Two investment firms, Delphia and Global Predictions, agree to pay $400K total in fines to SEC for "AI washing" - making false claims about using AI
- Firms made claims in filings, press releases, web sites about AI capabilities they did not actually have
- SEC vows to crack down on "AI washing" which misleads investors
- Delphia to pay $225K, Global Predictions to pay $175K in civil penalties
- SEC says investment firms cannot make false claims about using AI in investment processes