Scenario Library / AI regulatory violation
AI regulatory violation

SEC penalises 'AI washing' by advisers

In March 2024 the SEC settled charges against investment advisers Delphia and Global Predictions for making false claims about their use of AI. They paid $225,000 and $175,000, or $400,000 in total.

Financial Services 2024 Verified in a source

Insurance products that may respond

D&OFinancial services E&OCyber / Regulatory defense

Why it matters for insurance

Securities class actions often follow AI-washing enforcement.

Could your AI create this exposure?

See how AI-aware Tech E&O, Cyber, and D&O respond, and get a program built for your risk.

This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994