SEC fines money makers for misleading AI claims

Two investment companies paid a total USD 400,000 in civil penalties after the SEC had charged them with making false and misleading statements about their purported use of AI. 

The US Securities and Exchange Commission (SEC) charged Delphia (USA) Inc. and Global Predictions Inc. for misrepresenting their AI capabilities to clients and prospective clients. 

Delphia falsely claimed to use AI and machine learning in its investment process, while Global Predictions inaccurately labeled itself as the 'first regulated AI financial advisor' and touted 'expert AI-driven forecasts.'

Such deceptive practices undermine investor trust and emphasise the need for transparency and accuracy when discussing AI adoption in financial services.