The U.S. Securities and Exchange Commission’s (SEC) ongoing effort to combat “AI washing” has culminated in charges against Ilit Raz, the founder and former CEO of a now-defunct recruiting firm.
Raz’s company, Joonko, allegedly claimed that it was “the only automated sourcing platform focused solely on underrepresented candidates.” This claim drew the attention of numerous customers and financial backers, resulting in millions of dollars in investments. According to Gurbir Grewal, SEC enforcement division director, “It is critical for investors to beware of companies exploiting the fanfare around artificial intelligence to raise funds.”
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