US SEC fines two investment advisers over AI claims

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.