In February, U.S. Securities and Exchange Commission Chair Gary Gensler gave stern warnings regarding the practice of “AI Washing,” that is, companies exaggerating or otherwise misrepresenting their use of AI and machine learning technology. We’ve also seen enforcement activity from the SEC on this front in recent settlements with Delphia and Global Predictions. The SEC may just be getting warmed up, as last week it sued Joonko's founder and former CEO for a number of issues, including Joonko's misrepresentation of its AI capacities claimed to be used by the recruiting platform.
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SEC Enforcement of 'AI Washing' May Just Be Getting Started
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A spate of recent US enforcement actions is likely just the beginning of a crackdown on companies overhyping artificial intelligence to investors.
Since March, the Securities and Exchange Commission has accused three companies of so-called AI washing, or misrepresenting how they use machine learning and other tools. The moves follow multiple warnings from Gary Gensler, the agency’s chair, and the regulator’s top enforcement attorney over misstatements around the technology.
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