The SEC is cracking down on investment advisers that falsely claim to use AI

• The SEC is cracking down on investment advisers is says falsely claim to use AI.
• The agency settled with two advisers, Delphia and Global Predictions, who agreed to pay fines of $225,000 and $175,000, respectively.
• "Investment advisers should not mislead the public by saying they are using an AI model when they are not. Such AI washing hurts investors," SEC chair Gary Gensler said.

The SEC is beginning to crack down on companies it says are "AI washing."

In a release on Monday, the agency announced that they had settled with two investment advisers, who agreed to pay six-figure fines after being charged with "making false and misleading statements about their use of artificial intelligence."

The firms, Delphia (USA) and Global Predictions, agreed to pay penalties of $225,000 and $175,000 respectively.