Next SEC has plan in place for AI crackdown (Bloomberg Law)

Talk of drastic policy changes by the incoming SEC does not seem to include slowing enforcement cases against firms for making misleading statements about AI. Known as “AI washing,” the current SEC under Gary Gensler has been pursuing it as fraud through existing enforcement processes, and appearances are that these cases will continue under the Trump administration. According to Amy Lynch, FrontLine’s Founder and President, the cases stem from the same type of concerns that the SEC cited as greenwashing in ESG cases. While the continuation of rulemaking focused on deceptive practices of AI is less likely, Ms. Lynch comments that the examination program for next year has already been determined. AI-targeted exams are already underway and she stresses that the SEC’s plan for 2025 is in place despite a new chair being named. See Bloomberg Law, “AI-Washing Enforcement Crackdown Set to Survive Trump Rollbacks”