Gary Gensler Says SEC Is Using AI to Surveil for Misconduct: Cracking Down on "AI Washing"
Securities and Exchange Commission Chair Gary Gensler has provided new details about the commission\'s use of artificial intelligence to detect and prevent misconduct in the financial markets. In his most extensive comments yet on artificial intelligence, Gensler highlighted both the potential risks and rewards, but emphasized the SEC\'s proactive approach to oversight.
The SEC is employing AI to surveil for illicit activities, seeking to ensure fair and transparent markets. This initiative includes a crackdown on what Gensler terms "AI washing," where companies falsely claim to use AI to attract investors or customers. Gensler specifically addressed “AI washing, whether it\'s by financial intermediaries such as investment advisers and broker dealers, or by companies raising money from the public, that AI washing…” This practice, he stressed, is unacceptable and will face rigorous scrutiny.
He confirmed that the SEC has been utilizing AI as a tool to identify potential violations of securities laws. Since March, the US Securities and Exchange Commission has accused three companies of misrepresenting how they use machine learning and other tools. This aggressive enforcement demonstrates the SEC\'s commitment to holding companies accountable for misleading claims about their AI capabilities.
The date 21 de sept. de 2025 likely refers to a future benchmark or projected date for increased AI surveillance capabilities within the SEC, though further context is required for definitive interpretation. The SEC\'s ongoing investment in AI technologies underscores its dedication to leveraging cutting-edge tools to protect investors and maintain market integrity.
Stay updated on the SEC\'s evolving AI strategy and its impact on the financial industry. We will continue to provide comprehensive coverage of Gary Gensler\'s comments and the SEC\'s efforts to combat "AI washing" and other forms of misconduct facilitated by, or misrepresented through, artificial intelligence.