SEC Fines Investment Advisers Over False AI Claims

Delphia and Global Predictions agree to pay $400,000 in penalties for misleading AI advertisements.

The SEC has charged Delphia and Global Predictions with making false AI claims, resulting in a combined $400,000 in penalties.
Both companies falsely advertised their AI capabilities to investors, a practice known as 'AI washing'.
Delphia, based in Toronto, and Global Predictions, based in San Francisco, settled the charges without admitting wrongdoing.
The SEC's enforcement actions highlight the growing scrutiny on AI claims in the investment sector.
Investors are cautioned against the allure of new technologies and the potential for misleading claims.