Why the SEC’s Unwavering AI Policy Under New Leadership Could Shake Up Your Investment Playbook
The agency’s interest in AI has only deepened—especially around the emerging issue of “AI washing,” a term that refers to companies exaggerating their use of AI in ways that could mislead investors. According to Madiha Zuberi, an enforcement attorney in the SEC’s cybersecurity and emerging technologies unit, the SEC is continuing to build on the prior administration’s efforts to oversee AI-related disclosures. In recent public remarks, Zuberi listed predictive analytics, trading strategies and AI-infused investment advice as some of the subjects that are commanding the agency’s attention.
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