What is ‘AI washing?’ Companies pay $400K to SEC for inflated claims

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