June 10, 2024

The SEC’s Intensified Focus on AI Washing Practices

RiskWatch, Vcheck

Litigation attorney Andrew Balthazor was a featured guest on the RiskWatch podcast hosted by Vcheck, where he discussed the growing concern of artificial intelligence (AI) washing. This deceptive practice involves companies exaggerating or misrepresenting their use of artificial intelligence to attract investor interest. Notably, the U.S. Securities and Exchange Commission (SEC) has recently taken steps against investment advisers for making false claims about their use of AI, leading to more explicit regulations and an anticipated increase in enforcement actions with stricter penalties. Throughout the episode, Mr. Balthazor emphasizes the need for caution in AI investing, highlights the importance of understanding a company's true AI capabilities and suggests practical due diligence measures to help cut through misleading misinformation. 

Duration: 13:44

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