US SEC fines two investment advisers over AI claims
Reuters
Published Mar 18, 2024 08:14AM ET
Updated Mar 18, 2024 01:47PM ET
WASHINGTON (Reuters) -Two investment advisers have agreed to pay penalties to settle U.S. Securities and Exchange Commission charges that they made false and misleading statements about their use of artificial intelligence (AI), the regulator said on Monday.
Toronto-based Delphia Inc and San Francisco-based Global Predictions Inc, which did not admit or deny the SEC's charges, agreed to pay a combined $400,000 in fines to settle the civil charges related to "AI washing," the SEC said in a statement.
Regulators have been ratcheting up scrutiny on AI. The SEC has repeatedly warned companies about making false statements regarding AI technology. Chair Gary Gensler has reminded companies that they need to ensure that they are disclosing accurate information, especially if they are using artificial intelligence.
Global Predictions in a statement said it had cooperated with the inquiry.
"Additionally, we have clarified across our marketing how exactly we use AI," the statement said.
Delphia did not respond immediately to requests for comment.
The SEC found that from 2019 to 2023 Delphia made false and misleading statements in SEC filings, a press release and on its website over its purported use of AI and machine learning.
Global Predictions made false and misleading claims about AI in 2023 on its website and social media, the SEC said.
"We’ve seen time and again that when new technologies come along, they can create buzz from investors as well as false claims by those purporting to use those new technologies," SEC Division of Enforcement Director Gurbir Grewal said in a statement.
Delphia will pay a $225,000 penalty while Global Predictions will pay $175,000, the SEC said.
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Written By: Reuters
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