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Techopedia. AI washing fines begin as SEC cracks down on AI hype

he AI hype train has gained momentum, leading to companies using terms like "AI-enabled" and "AI-powered" in their advertising, even if their products lack real AI capabilities. This trend, known as "AI washing," has caught the attention of the US Securities and Exchange Commission. The SEC orders found that the companies, Delphia and Global Predictions, violated rules by overstating their AI capabilities, resulting in fines and penalties. These actions serve as a warning for other companies to take their AI claims seriously to avoid misleading investors.

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