Federal regulators anticipating drastic change under the second Trump administration are nonetheless poised to continue pursuing enforcement against companies making false and misleading statements about artificial intelligence, known as AI washing.
Policing misrepresentations about AI under the aegis of fraud enforcement is a strategy that will remain viable, even with the expected deregulatory emphasis in the new administration, according to securities lawyers and compliance consultants.
The Securities and Exchange Commission, Federal Trade Commission, and state securities regulators have each taken steps to crack down on AI washing through enforcement. Meanwhile, rulemaking specifically targeting the practice has been less of a ...