AI washing: Regulator urges accurate disclosures by issuers

By Stewart Muglich ( November 28, 2024, 11:00 AM EST) -- Artificial Intelligence (AI) has rapidly emerged as a transformative force in the investment landscape, with growing interest from investors eager to engage with companies that leverage AI technologies. As issuers increasingly highlight their use of AI to attract capital, issuers are also prone to exaggerating or inflating AI capabilities in continuous disclosure (CD) documents that can undermine transparency, mislead investors and could lead to sanctions by relevant regulatory authorities against the offending issuers....