AI-washing enforcement crackdown set to survive Trump rollbacks

AI-Washing Enforcement Crackdown Set to Survive Trump Rollbacks

Federal regulators are poised to continue pursuing enforcement against companies making false and misleading statements about artificial intelligence, known as AI washing.

Enforcement Priorities: The Securities and Exchange Commission, Federal Trade Commission, and state securities regulators have each taken steps to crack down on AI washing through enforcement. Policing misrepresentations about AI under the aegis of fraud enforcement is a strategy that will remain viable, even with the deregulatory emphasis expected during Donald Trump’s second term, according to securities lawyers and compliance consultants.

Rulemaking attempts will be challenging or nonexistent even as ...