Description: In a case of AI washing, the SEC charged two investment advisers, Delphia and Global Predictions, for falsely stating their use of artificial intelligence in their investment strategies between 2019 and 2023. Their misleading claims resulted in a settlement whereby the firms agreed to pay a total of $400,000 in penalties, highlighting the critical consequences of misrepresenting AI capabilities on investment decisions and trust.
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The OECD AI Incidents and Hazards Monitor (AIM) automatically collects and classifies AI-related incidents and hazards in real time from reputable news sources worldwide.
Entities
View all entitiesAlleged: Global Predictions and Delphia (USA) developed and deployed an AI system, which harmed Investors.
Incident Stats
Risk Subdomain
A further 23 subdomains create an accessible and understandable classification of hazards and harms associated with AI
4.3. Fraud, scams, and targeted manipulation
Risk Domain
The Domain Taxonomy of AI Risks classifies risks into seven AI risk domains: (1) Discrimination & toxicity, (2) Privacy & security, (3) Misinformation, (4) Malicious actors & misuse, (5) Human-computer interaction, (6) Socioeconomic & environmental harms, and (7) AI system safety, failures & limitations.
- Malicious Actors & Misuse
Entity
Which, if any, entity is presented as the main cause of the risk
Human
Timing
The stage in the AI lifecycle at which the risk is presented as occurring
Other
Intent
Whether the risk is presented as occurring as an expected or unexpected outcome from pursuing a goal
Intentional
Incident Reports
Reports Timeline
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Securities and Exchange Commission post-incident response
Washington D.C., March 18, 2024 --- The Securities and Exchange Commission today announced settled charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements about the…
Variants
A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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