'SEC’s AI Crackdown Signals Trickle of Cases Will Turn to Flood'

 

• Agency has filed three enforcement cases since March
• Securities lawyers see similarity to early crypto scrutiny

A spate of recent US enforcement actions is likely just the beginning of a crackdown on companies overhyping artificial intelligence to investors.

Since March, the Securities and Exchange Commission has accused three companies of so-called AI washing, or misrepresenting how they use machine learning and other tools. The moves follow multiple warnings from Gary Gensler, the agency’s chair, and the regulator’s top enforcement attorney over misstatements around the technology.

https://www.bloomberg.com/news/articles/2024-06-20/sec-s-ai-crackdown-signals-trickle-of-cases-will-turn-to-flood