Gary Gensler Warns Companies About Artificial Intelligence Boasting: Don't 'AI Wash'
Portfolio Pulse from Chris Katje
SEC Chairman Gary Gensler cautioned companies against overstating the impact of artificial intelligence (AI) on their financials, a practice he referred to as 'AI washing'. He emphasized the need for truthful disclosure when raising funds from the public. Gensler also warned about the use of generative AI for fraud. Shares of NVIDIA Corp (NVDA) and C3.ai Inc (AI) have seen significant increases in 2023, while Microsoft Corp (MSFT) invested $10 billion in OpenAI. AI was named Word of the Year by Collins Dictionary for 2023.
December 07, 2023 | 5:12 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
C3.ai Inc, an enterprise AI company, has seen its shares increase over 130% YTD in 2023.
C3.ai's stock has surged, but the SEC's warnings may lead to increased regulatory scrutiny on AI claims, which could affect investor confidence and stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Microsoft Corp invested $10 billion in OpenAI, the parent company of ChatGPT, indicating a significant commitment to AI development.
Microsoft's investment in AI through OpenAI is substantial, but Gensler's comments on AI disclosures could lead to more cautious investor communication and potentially impact stock performance.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
NVIDIA Corp shares have risen over 200% YTD in 2023, surpassing a $1 trillion market cap in May, making it one of the best-performing large-cap companies.
While NVDA has performed exceptionally well, Gensler's warnings could lead to more scrutiny on AI-related claims, potentially affecting investor sentiment. However, NVDA's strong performance may mitigate short-term impact.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70