Insights & Regulatory Updates
Start-Up AI and Robotics Company and CEO Face SEC Charges for Investor Fraud
In a recent enforcement action, the Securities and Exchange Commission (SEC) charged Destiny Robotics Corp., a start-up specializing in artificial intelligence (AI) and robotics, along with its founder and CEO, Megi Kavtaradze, for allegedly defrauding investors through false and misleading statements about the company’s operations and products.
SEC Targets Misleading AI Claims: Enforcement Actions and Key Takeaways
Explore the SEC's recent enforcement actions targeting "AI washing"—the practice of overstating or misrepresenting the use of artificial intelligence. Learn about key cases, regulatory risks, and compliance strategies for firms leveraging AI technology.
Understanding Conflicts of Interest in Artificial Intelligence: Video from SEC Chair Gary Gensler
On August 13, 2024, SEC Chair Gary Gensler released a video discussing the growing role of artificial intelligence (AI) in finance, particularly how it can introduce conflicts of interest that may impact investors. As AI becomes more integrated into financial services—from robo-advisors to brokerage applications—the potential for these conflicts to influence investment decisions and outcomes increases.