Investment advisers pay $400K to settle ‘AI washing’ charges

The U.S. SEC announced settlements with Delphia (USA) and Global Predictions totaling $400,000 for “AI washing,” finding both firms made misleading claims about using AI in their investment products and marketing—such as claiming to be the “first regulated AI financial advisor” and touting expert AI-driven forecasts—while also citing Marketing Rule violations and other misrepresentations (including tax-loss harvesting and an impermissible liability clause). Delphia will pay $225,000 and Global Predictions $175,000; the SEC also issued an investor alert urging caution and due diligence regarding AI-based financial services.