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Expert Analysis

Innodata Suit Highlights 'AI Washing' Liability Risk For Cos.

By David Shargel, Rachel Goldman and Patrick Morley ( March 14, 2024, 6:31 PM EDT) -- Months after U. S. Securities and Exchange Commission Chair Gary Gensler warned[1] regulated business owners about potential securities law liability over conduct known as AI washing,[2] or misleading investors as to the company's true artificial intelligence capabilities, a class of plaintiffs has filed suit in New Jersey federal court, seeking damages under this novel theory. [3]. . .

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