Two Investment Firms Charged with Making False Claims of Artificial Intelligence Capabilities in Case of AI Washing

January 1, 2019

Two investment advisers, Delphia and Global Predictions, faced charges from the SEC for misleading claims about their use of artificial intelligence in their investment strategies between 2019-2023. The firms agreed to a $400,000 penalty settlement, emphasizing the significance of truthful AI representation in investment decisions and fostering trust. Join us at HISPI Project Cerebellum TAIM to help establish governance for safe and secure AI practices. JOIN US
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Matched TAIM controls

Suggested mapping from embedding similarity (not a formal assessment). Browse all TAIM controls

MAP 3.2 — similarity 0.650, rank 1. TAIM detail and related incidents →
MEASURE 1.3 — similarity 0.636, rank 2. TAIM detail and related incidents →
MEASURE 2.6 — similarity 0.634, rank 3. TAIM detail and related incidents →

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.