News & Analysis as of

Investors Securities and Exchange Commission (SEC) Artificial Intelligence

Orrick, Herrington & Sutcliffe LLP

SEC’s Gensler discussed recent enforcement actions and artificial intelligence risks

On August 1, the Chair of the SEC, Gary Gensler, addressed the Strike Force on Unfair and Illegal Pricing emphasized the agency’s commitment to combating deceptive, fraudulent and anticompetitive practices. The Chair...more

Foley & Lardner LLP

Don’t Buy The Buzzwords: “AI Washing” Gets Its Reckoning

Foley & Lardner LLP on

Since the release of ChatGPT 3.5 in November 2022, public interest in artificial intelligence (AI) has surged in a classic example of a hype cycle. As with past technological breakthroughs, companies may be tempted to...more

Gray Reed

Amicus Briefs Filed, Challenging SEC's "Regulation By Enforcement" Approach

Gray Reed on

Gray Reed has recently filed two significant amicus briefs challenging the Securities and Exchange Commission’s (SEC) controversial “regulation by enforcement” approach, particularly in emerging technology sectors....more

Mayer Brown Free Writings + Perspectives

SEC Investor Advocate Report on Objectives

The Securities and Exchange Commission’s Office of the Investor Advocate recently issued its fiscal year 2025 Report on Objectives. The Report is one of two annual reports required to be filed by the Investor Advocate with...more

Orrick, Herrington & Sutcliffe LLP

AI Washing Enforcement Continues, Highlighting Risks to Companies and Investors

Last month, the U.S. Securities and Exchange Commission (“SEC”) expanded its “war” on AI fraud to include private market participants, filing securities fraud charges against Ilit Raz, founder and former CEO of defunct AI...more

Vinson & Elkins LLP

Oversold and Underdelivered: SEC Charges Former Startup CEO with “AI Washing” Securities Fraud

Vinson & Elkins LLP on

On June 11, 2024, the United States Securities and Exchange Commission (the “SEC”) charged Illit Raz, the former CEO and founder of the since-shut-down artificial intelligence recruiting startup Joonko Diversity Inc....more

KPMG Board Leadership Center (BLC)

Midyear observations on the board agenda - Based on insights from the 2024 Board Leadership Conference

Approaching midyear, business leaders are bullish on growth and the opportunities ahead. At the same time, the macro forces of GenAI, climate change, a multipolar geopolitical landscape and the erosion of trust and healthy...more

Eversheds Sutherland (US) LLP

Dual registrant regulatory roundup - May 2024

Welcome to the Regulatory Roundup. Each month, Eversheds Sutherland Investment Services attorneys review significant regulatory developments (including notable rulemakings and guidance from securities regulators) from the...more

Mayer Brown

Securities and Exchange Commission Brings First Enforcement Actions Over “AI-Washing”

Mayer Brown on

On March 18, 2024 the US Securities and Exchange Commission (“SEC” or the “Commission”) announced that it had settled charges in separate actions against two investment advisers, Delphia (USA) Inc. (“Delphia”) and Global...more

Kramer Levin Naftalis & Frankel LLP

SEC Takes Action Against ‘AI Washing,’ Fines Two Investment Advisers for Misrepresenting Artificial Intelligence Use

On March 18, the Securities and Exchange Commission (SEC) announced that it settled charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements about...more

Wilson Sonsini Goodrich & Rosati

SEC Actions Highlight Focus on the Use of AI by Investment Advisers

Two settlement orders involving claims by investment advisers regarding their use of artificial intelligence (AI), both announced on the same day, underscore the continued focus on advisers' use of AI by the U.S. Securities...more

Patterson Belknap Webb & Tyler LLP

Increase in Securities Litigation and Regulatory Scrutiny Concerning Artificial Intelligence

Several recent lawsuits, and comments by the U.S. Securities and Exchange Commission (“SEC”) and Federal Trade Commission (“FTC”), underscore the increasing litigation and regulatory scrutiny concerning the use of artificial...more

White & Case LLP

Recent Regulatory Announcements Confirm Increased Scrutiny of “AI-Washing”

White & Case LLP on

In December 2023, we published an alert concerning US Securities and Exchange Commission ("SEC") Chair Gary Gensler's warning to public companies against "AI washing" – that is, making unfounded claims regarding artificial...more

StoneTurn

ESG is a Four Act Play and Intermission is About to End

StoneTurn on

As socially responsible investing has gone mainstream, regulators in Europe and the United States have stepped in and are now formalizing rules around disclosures pertaining to Environment, Social and Governance (“ESG”)...more

Carlton Fields

SEC Proposal Balances AI-Like Technology Use With Investor Best Interests: Has the Regulator Picked a Winner?

Carlton Fields on

Like other savvy businesses, investment advisers and broker-dealers have increasingly embraced the use of predictive data analytics, artificial intelligence, and similar technologies (AI-like technologies) to help generate...more

Kohn, Kohn & Colapinto LLP

Gensler discusses markets “ripe with misconduct” and new SEC rules to address Changing Times

On September 12, the U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler testified before the U.S. Senate Committee on Banking, Housing, and Urban Affairs. His testimony emphasized that market growth combined...more

DarrowEverett LLP

Danger, Does Not Compute: SEC Takes Aim at Predictive Data Analytics Per Proposed Rules

DarrowEverett LLP on

On July 26, 2023, the Securities and Exchange Commission (“SEC”), in a 3-2 vote, issued a release (the “Release”) containing proposed rules to address conflicts of interest associated with broker dealers’ and investment...more

Dechert LLP

SEC Proposes New Regulatory Framework for Use of AI by Broker-Dealers and Investment Advisers

Dechert LLP on

The SEC has proposed new rules designed to regulate potential conflicts of interest associated with broker-dealers’ and investment advisers’ use of certain AI-related technologies in their interactions with investors. The...more

K&L Gates LLP

A New Frontier: The SEC Addresses Artificial Intelligence (and a Whole Lot More)

K&L Gates LLP on

Executive Summary - Newly proposed rules (the Predictive Analytics Rules) will, if adopted as proposed, require broker-dealers and investment advisers (firms) to: (i) identify conflicts of interests when using certain...more

Cooley LLP

Could AI trigger a financial crisis?

Cooley LLP on

In remarks on Monday to the National Press Club, SEC Chair Gary Gensler, after first displaying his math chops—can you decipher “the math is nonlinear and hyper-dimensional, from thousands to potentially billions of...more

Akin Gump Strauss Hauer & Feld LLP

AI Risk Matrix for Private Funds

Numerous journalists have showcased their use of “deep-voice” and other Artificial Intelligence technologies to spoof electronic confirmation systems. Although these attempts to bypass security, so far, have largely been...more

Opportune LLP

Why Technology Can Ease Your ESG Reporting Headache

Opportune LLP on

From Amazon to Walmart, companies across the globe are striving to implement ESG initiatives that can stand up to increased scrutiny. The energy industry, like all industries, is facing the possibility of new standards...more

Proskauer - The Capital Commitment

SEC Chairman Identifies Guiding Principles

On July 12, 2017, newly appointed SEC Chairman Jay Clayton delivered a speech at the non-partisan Economic Club of New York wherein he set forth several high-level guiding principles for the agency. In general, these remarks...more

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