SEC intensifies scrutiny on ‘AI washing’
Regulator made first enforcement actions against high-tech misrepresentations this year
The US securities regulator has warned firms not to falsely advertise the use of artificial intelligence in their investment products, adding those that engage in ‘AI washing’ may face enforcement action.
“It is a nice thing to advertise to show investors that ‘hey, we are cutting-edge’, but if the firm is not actually using it, it can attract the attention of enforcement,” said Maurya Keating, associate regional director for the investment adviser and investment company examination programme at
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