The actions are part of increased regulatory scrutiny on how companies, investment advisers, and other market participants are using AI and their related disclosures.

On March 18, 2024, the US Securities and Exchange Commission (SEC) announced two first-of-their kind settled enforcement actions with investment advisers Delphia (USA) Inc. (Delphia) and Global Predictions Inc. (Global Predictions) based on alleged false and misleading statements made about the firms’ purported use of artificial intelligence (AI), including alleged violations of the Amended Marketing Rule. The two firms agreed to settle the SEC’s charges and pay a total of $400,000 in civil penalties.