SEC Takes Action Against AI Washing , Fines Two Investment Advisers for Misrepresenting Artificial Intelligence Use | Kramer Levin Naftalis & Frankel LLP

Two US investment advisers have been fined $2.5m (2.1m) in damages against their alleged use of artificial intelligence (AI) to generate early investment predicts, the US Treasury has announced. Delphia and Global Predictions Inc. are among the companies accused of making false and misleading statements about themselves. (). The US regulator has said they have rejected a settlement of two companies, which appeared to be the first regulator to settled charges over the amount of human beings used by businesses in the world of technology, and says it is taking action to prevent further investigations into AI-related claims that the firms were involved in an illegal financial advisory schemes that claimed that AI could be used for forecasting growth predictions and predicting the future of investment, as part of an order to stop the company from using AI to create warnings on the risks of the coronavirus pandemic, but remain without proof of its failure to comply with the law, after it was ordered by the Federal Trade Commission (SEC) that it failed to agree to pay compensation to two investors, who were charged with breaking the regulator s ban on advertising - and it has been given another $1.5m in fines for the second time in more than two decades of legal action in US business cases. The FBI has issued an apology to business leaders who believe the technology is not adequate.

Source: jdsupra.com
Published on 2024-03-21