In a recent article in Hedge Fund Law Report, Amy Jane Longo, a litigation and enforcement partner, addresses the SEC’s intensified focus on ‘AI washing.’ This term refers to false or exaggerated claims about the use of artificial intelligence.
Longo highlights a recent enforcement action concerning AI washing as potentially indicative of more severe charges in future cases. She explains how the SEC is applying existing securities law doctrines to address alleged misrepresentations by investment firms regarding AI technology and machine learning models.
In her article, Longo states, “as companies of all shapes and sizes across different kinds of industries begin to utilize AI tools – and to disclose them to investors or clients in SEC filings or elsewhere – the SEC is sure to ratchet up its scrutiny of such disclosures and the claims they contain.”
