SEC Fines Two Firms for Bogus Artificial Intelligence Claims (2)

The US Securities and Exchange Commission penalized two money managers for what it says were bogus claims about their use of artificial intelligence, marking the beginning of a fresh crackdown by Wall Street’s main regulator.

The SEC said Monday that Delphia (USA) Inc. and Global Predictions Inc. both made “false and misleading statements” about their purported use of the technology.

Global Predictions said that it had clarified how it uses AI in its marketing materials, and that it “cooperated fully with the inquiry and is pleased to put this behind us.” A lawyer for Delphia didn’t immediately respond to a ...