- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2024-03-01T12:00:00
Federal agencies, including the Securities and Exchange Commission (SEC), Department of Justice (DOJ), and Federal Trade Commission (FTC), are taking every opportunity to warn firms that how they use—and represent their use of—artificial intelligence (AI) could result in violations.
“AI washing” has become a popular way to describe a firm or company making exaggerated claims about what its AI can do in order to boost profits and lure investors.
“Fraud is fraud, and bad actors have a new tool, AI, to exploit the public,” said SEC Chair Gary Gensler in remarks delivered at Yale Law School on Feb. 13.
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Gurbir Grewal, director of the Securities and Exchange Commission’s Division of Enforcement, laid out general principles for “proactive compliance” to avoid making false or misleading claims about the capabilities of artificial intelligence products and services.
Compliance officers took to the main stage to share their experiences at Compliance Week’s 2024 National Conference, while other highlights included conversations around artificial intelligence and the modern challenges the industry is confronting.
Delphia USA and Global Predictions agreed to pay a total of $400,000 to settle charges by the Securities and Exchange Commission the firms each engaged in artificial intelligence misrepresentations that misled clients about how they were using the technology.
The Department of Justice’s renewed scrutiny toward a corporation’s approach to the use of personal devices strengthens the case for companies to get away from bring your own device, a panelist at Compliance Week’s 2024 National Conference argued.
Compliance failures in the supply chain are hampering organizations’ efforts to implement environmental, social, and governance initiatives and meet disclosure requirements, according to a new report by U.K. law firm Burges Salmon.
Examiners with the Securities and Exchange Commission found investment advisory firms have generally done well creating processes to comply with the agency’s amended marketing rule but some have fallen short in ensuring compliance.
