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SEC Chief Warns Against 'AI Washing'
Artificial intelligence could drive greater efficiency and lower costs in the finance sector but U.S. Securities and Exchange Commission Chair Gary Gensler warned last month about companies potentially making false claims about using the technology, a nefarious practice known as "AI washing."
Companies should be "truthful about what they're saying about their claims," Gensler said at an event hosted by the consumer rights group Public Citizen.
They should also "talk about the risks" of using AI "and how they manage their risk," he added.
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