Overview

• The SEC has charged Delphia and Global Predictions with making false AI claims, resulting in a combined $400,000 in penalties.
• Both companies falsely advertised their AI capabilities to investors, a practice known as 'AI washing'.
• Delphia, based in Toronto, and Global Predictions, based in San Francisco, settled the charges without admitting wrongdoing.
• The SEC's enforcement actions highlight the growing scrutiny on AI claims in the investment sector.
• Investors are cautioned against the allure of new technologies and the potential for misleading claims.