The U.S. Securities and Exchange Commission (SEC) announced that Delphia (USA) Inc..and Global Predictions Inc.Settle charges alleging using artificial intelligence to make false statements。The two companies agreed to settle the SEC's charges and pay civil penalties totaling $400,000.。

According to the SEC's order against Delphia, from 2019 to 2023, the Toronto-based company made false and misleading statements in its filings with the SEC, in a press release, and on its website regarding its claims to have used artificial intelligence and machine learning to incorporate customer data into its investment processes.。

For example, according to the order, Delphia claims that it "uses collective data to make our artificial intelligence smarter, so as to predict which companies and trends are about to become popular, and to pre-empt investment in these companies and trends."。

The order finds the claims to be false and misleading because Delphia does not in fact have the artificial intelligence and machine learning capabilities it claims to have.。The company is also accused of violating the Marketing Rule, which prohibits registered investment advisers from disseminating any advertisements that contain any untrue statements of material fact.。

In its order against Global Predictions, the SEC found that the San Francisco-based company made false and misleading claims on its website and social media in 2023 about the artificial intelligence it claimed to use.。For example, the company falsely claimed to be "the first regulated AI financial advisor" and falsely stated that its platform offers "AI-driven professional forecasting."。

Global Predictions also violated the Marketing Rules by falsely claiming that it provided tax-loss harvesting services and included impermissible liability hedging clauses in its consulting contracts, among other violations of securities laws.。

Delphia and Global Predictions did not acknowledge or deny the SEC's findings, but agreed to issue an order finding them in violation of the Advisers Act and ordering them to be reprimanded to cease and desist from violating the terms under which they were charged.。Delphia agrees to pay 22.$50,000 civil penalty, Global Predictions agrees to pay 17.$50,000 civil fine。