In separate orders announced on March 18, the SEC charged Toronto-based Delphia (USA) Inc. and San Francisco-based Global Predictions Inc. with securities violations by misrepresenting their artificial intelligence capabilities to customers and potential investors. Law.
SEC Chairman Gary Gensler said: “We have seen time and time again that when new technologies emerge, they generate investor buzz and false claims from those who claim to use them. Statement.” “Investment advisers should not mislead the public by saying they are using artificial intelligence models when in fact they are not.”
Likewise, according to the SEC order, Global Predictions made false and misleading statements on its website and social media in 2023 about its alleged use of artificial intelligence. For example, the company falsely claimed that it was the “first regulated AI financial advisor” and falsely stated that its platform provided “expert AI-driven predictions.”
Without admitting or denying the SEC's findings, Delphia agreed to pay a civil penalty of $225,000 and Global Predictions agreed to pay a civil penalty of $175,000.
Two months ago, another U.S. regulator, the CFTC, warned investors about artificial intelligence investment plans. According to the regulator, scammers exploit artificial intelligence to generate high returns through the use of trading bots, signals and crypto-asset arbitrage.
