SEC Charges Two Investment Firms for Misrepresenting Artificial Intelligence Capabilities: Harm Prevention in AI Governance
January 1, 2019
In an instance of AI washing, the SEC has accused Delphia and Global Predictions for misstating their utilization of AI in their investment strategies from 2019 to 2023. These false claims prompted a settlement whereby the firms agreed to pay $400,000 in penalties. Such misrepresentations underscore the significant implications of exaggerating AI capabilities on investment decisions and trust. Ready to help shape trustworthy AI? JOIN US This AI incident maps to the Govern function in HISPI Project Cerebellum Trusted AI Model (TAIM).
- Alleged deployer
- global-predictions-inc., delphia-(usa)-inc.
- Alleged developer
- global-predictions-inc., delphia-(usa)-inc.
- Alleged harmed parties
- investors
Source
Data from the AI Incident Database (AIID). Cite this incident: https://incidentdatabase.ai/cite/653
Data source
Incident data is from the AI Incident Database (AIID).
When citing the database as a whole, please use:
McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.
Pre-print on arXiv · Database snapshots & citation guide
We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.