The SEC fined two investment advisors, Delphia (USA) and Global Predictions, for allegedly making false statements about their use of AI technology which is known as “AI washing.” The SEC alleged that between 2019 and 2023, Delphi misled the public in SEC filings about their use of AI for investment opportunities. The SEC also alleged that Global Predictions claimed that its platform provided “[e]xpert AI-driven forecasts” on their website and social media which was false. Delphia and Global Predictions agreed to settle with the SEC on March 18th paying $225,000 and $175,000, respectively in civil penalties.
The SEC Settles with Two Investment Advisors over “AI Washing”
