“AI washing”, sanctioned in the United States, could also be sanctioned in Switzerland

Published on June 14, 2024 at 06:38. / Modified on June 14, 2024 at 07:09.

We have known for years about “greenwashing”, this marketing method consisting, for companies, of greening all their actions. Now it’s time for “AI washing”. We have noticed for some time that all companies, from multinationals to start-ups, use and abuse the term “artificial intelligence” in their communication, in order to make their services even more desirable for consumers. These deceptions, or semi-deceptions, are also seen in the financial field. And this has very concrete consequences.

So, this spring, the Securities and Exchange Commission (SEC) decided to crack down. The American stock market watchdog has sanctioned two fund managers for misleading assertions. Delphia (USA) Inc. and Global Predictions Inc. were accused of “false and misleading statements” about their alleged use of the technology. In detail, Delphia, based in Toronto, made false statements about how it used machine learning in its investment process from 2019 to 2023. For its part, Global Predictions, based in San Francisco, made misleading statements such as being the “first regulated AI financial advisor.” The first company was fined $225,000, the second $175,000.

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