The United States Securities and Exchange Commission (SEC) charged two companies for falsely exaggerating the use of artificial intelligence in their products, marking one of the first-ever enforcement actions against “AI washing.” AI washing is the use of deceptive and inaccurate claims about a company’s use of AI or machine-learning capabilities to capitalize on the hype surrounding the technology. SEC Chair Gary Gensler previously warned against AI washing in statements at a conference in December, according to the Wall Street Journal, comparing the practice to “greenwashing,” or the inflation of claims about environmental sustainability.

Source: SC Magazine