Description: In a case of AI washing, the SEC charged two investment advisers, Delphia and Global Predictions, for falsely stating their use of artificial intelligence in their investment strategies between 2019 and 2023. Their misleading claims resulted in a settlement whereby the firms agreed to pay a total of $400,000 in penalties, highlighting the critical consequences of misrepresenting AI capabilities on investment decisions and trust.
Entities
View all entitiesAlleged: Global Predictions Inc. and Delphia (USA) Inc. developed and deployed an AI system, which harmed Investors.
Incident Stats
Incident ID
653
Report Count
1
Incident Date
2019-01-01
Editors
Incident Reports
Reports Timeline
sec.gov · 2024
- View the original report at its source
- View the report at the Internet Archive
Securities and Exchange Commission post-incident response
Washington D.C., March 18, 2024 --- The Securities and Exchange Commission today announced settled charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements about the…
Variants
A "variant" is an incident that shares the same causative factors, produces similar harms, and involves the same intelligent systems as a known AI incident. Rather than index variants as entirely separate incidents, we list variations of incidents under the first similar incident submitted to the database. Unlike other submission types to the incident database, variants are not required to have reporting in evidence external to the Incident Database. Learn more from the research paper.
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