Bracewell’s David Shargel told InvestmentNews it is likely that the Securities and Exchange Commission’s enforcement on AI washing will broaden out from the handful of straightforward cases brought to date.
“There’s a good chance that enforcement actions will eventually move away from the black and white and into the gray areas, which raises questions about what does it mean to be using AI,” Shargel said. “There’s not singular definition of what AI is, and that can make it difficult for companies to describe it. And AI can be difficult to enforce.”
