SEC’s Gensler Warns Public Companies Against Overblown AI Claims

Publicly traded companies need to avoid “AI washing” when talking to investors about their use of the technology, according to the head of the US Securities and Exchange Commission.

SEC Chair Gary Gensler said Tuesday that companies must clarify for investors what they mean when referring to artificial intelligence. Corporations need to be specific about how they’re using it, risks to operations, and decide if executives’ comments regarding the technology must be disclosed to investors.

“As AI disclosures by SEC registrants increase, the basics of good securities lawyering still apply,” Gary Gensler said in a speech at Yale Law ...