The SEC has been cracking down on false or exaggerated claims regarding use of artificial intelligence (AI), which it refers to as “AI washing.” For example, the SEC claimed that a registered investment adviser and related entities made false and misleading claims about the firms’ use of AI, both in connection with a securities offering and in promoting the investment advisory business. This article details the SEC’s charges and the terms of the settlement, with commentary from Amy Jane Longo, partner at Ropes & Gray, who believes this enforcement action may be a sign of more serious charges to come in future cases of AI washing. See “SEC Settlements Target ‘AI Washing’” (May 23, 2024).