WASHINGTON (Reuters) – Two investment advisory groups have agreed to pay fines to the U.S. Securities and Exchange Commission (SEC) which accused them of misleading statements about their use of artificial intelligence (AI), said the SEC on Monday.
Toronto-based Delphia Inc and San Francisco-based Global Predictions Inc will pay a total of $400,000 (€367,410.67) in penalties to end civil lawsuits over “AI-washing” accusations , the SEC said in a statement.
Delphia and Global Predictions, which neither disputed nor admitted the SEC’s charges, did not immediately respond to requests for comment.
According to the US Market Watchdog, from 2019 to 2023, Delphia made false and misleading statements about its purported use of AI in documents filed with the SEC, in a press release and on its website, while Global Predictions has made false and misleading claims about AI in 2023 on its site and social media.
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“We have seen time and time again that when new technologies emerge, they can generate investor excitement and lead to misrepresentations from those who claim to use these new technologies,” said Gurbir Grewal, director of the SEC Enforcement Division, in a statement.
Delphia will have to pay a penalty of $225,000, while Global Predictions will have to pay $175,000, the SEC said.
(Reporting Susan Heavey in Washington and Chris Prentice in New York; French version Augustin Turpin; editing by Sophie Louet)
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