Overstating or inventing the use or capability of AI in marketing or investor communications. US regulators treat it as deception; the SEC settled charges against two investment advisers over such claims in March 2024 1.
- Developed in
- ch. 20, Unfair and deceptive practices in the United States
ch. 05, Pattern: Claims Substantiation Gate - Chapters
- ch. 05, Patterns · ch. 20, Existing Law
- Source
- 1 numbered reference, listed below
Where it is used
One chapter of the Body of Knowledge uses the term. Each link opens the first section that does.
- 20 · Existing Law Consumer protection 1 mention
Related terms
Sources
- [1] "SEC Charges Two Investment Advisers with Making False and Misleading Statements About Their Use of Artificial Intelligence" (Delphia and Global Predictions). US Securities and Exchange Commission. 2024-03-18. https://www.sec.gov/newsroom/press-releases/2024-36 (verified: primary)
Definitions of legal terms paraphrase the cited text, which governs. Dated statements are as of .