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 will pay a combined $400,000 in fines to settle the civil charges related to “AI washing”, the SEC said in a statement.
Delphia and Global Predictions, which did not admit or deny the agency’s charges, did not respond immediately to requests for comment.
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 they need to ensure they are disclosing accurate information, especially if they are using artificial intelligence.
The SEC found that Delphia, from 2019 to 2023, 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.
(Reporting by Susan Heavey in Washington and Chris Prentice in New York; Editing by Doina Chiacu and Emelia Sithole-Matarise)
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