In December of a recent year, the U.S. Securities and Exchange Commission (SEC) sent out a warning about companies making bold, unfounded statements about their technological capabilities. It wasn’t long after that they started enforcing this precaution.
On March 18, the first two charges by the agency were issued against investment advisors Delphia (USA) Inc. and Global Predictions Inc. These companies were accused of making incorrect statements about their supposed use of Artificial Intelligence (AI). This was the agency’s debut into enforcement actions aimed at AI washing. Such an active start hints at not just the SEC, but also other state and federal agencies poised for increased scrutiny of business practices involving AI use.
Experts anticipate that the SEC’s charges set a precedent which is predicted to be just the start of tighter regulation and increasing oversight over AI practices to ensure clarity and accuracy. Fine tune in to the SEC’s actions; with these charges, the signal is clear – the era of unchecked AI claims could be nearing its end.
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