‘AI Washing’ – Crackdown


The US investment regulator, the Securities and Exchange Commission (SEC), has dished out penalties totalling $400,000 to two investment companies who made misleading claims about how they used AI, a practice dubbed ‘AI Washing’. 

What Is AI Washing? 

The term ‘AI washing’ (as used by the investment regulator in this case) refers to the practice of making unsubstantiated or misleading claims about the intelligence or capabilities of a technology product, system, or service in order to give it the appearance of being more advanced (or artificially intelligent) than it actually is.  

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