Two lawsuits made in SEC crackdown on hyped AI claims

The U.S. Securities and Exchange Commission penalized two money managers for what it says were bogus claims about their use of artificial intelligence, stepping up a crackdown by Wall Street’s main regulator.

The SEC said on Monday that Delphia (USA) Inc. and Global Predictions Inc. both made “false and misleading statements” about their purported use of the technology. Lawyers for each of the investment advisers didn’t immediately respond to requests for comment.

SEC Chair Gary Gensler has been warning firms about over-hyped statements related to AI. The agency has specific authorities to oversee statements that money managers make to investors.