How to spot AI washing in IT tools
On March 18, 2024, the Securities and Exchange Commission (SEC) fined two investment advisers for making false and misleading statements about their use of AI to help clients. Both companies agreed to pay a penalty. Delphia (USA) paid $225,000 and Global Predictions Inc. paid $175,000. In the SEC announcement, then-Chair Gary Gensler used a term for the practice: AI washing.Since those were finance companies, the investors had regulators checking the claims. But many IT buyers don’t have that sa...