SEC Fines Toronto-Based Delphia and San Francisco-Based Global Predictions for Misleading AI Claims
SEC Fines Two Investment Firms for Deceptive 'AI Washing' Practices
Two investment firms agreed to pay a combined $400,000 in penalties to settle charges for making false and misleading statements about their use of artificial intelligence. Neither Toronto-based Delphia nor San Francisco-based Global Predictions admitted nor denied the civil charges, highlighting the SEC's focus on cracking down on 'AI washing'.
Delphia Misrepresentation and Settlement
Between 2019 and 2023, Delphia claimed AI and machine learning capabilities in SEC filings, press releases, and its website, leading to a $225,000 settlement in the civil case.
Global Predictions' Misleading AI Claims
Global Predictions faced a $175,000 civil penalty for misrepresenting its AI usage on its platforms and cooperated in clarifying how AI is utilized in its operations.
SEC's enforcement actions signal a need for investment firms to ensure the accuracy of AI-related disclosures to avoid misleading investors.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.