Over the last several months, various SEC spokespeople, including SEC Chair Gary Gensler, have issued strong precautionary statements against so-called “AI-washing,” which Microsoft Co-Pilot, an AI-powered tool, defines as a “deceptive marketing tactic where a product or service is promoted by exaggerating or falsely claiming the use of artificial intelligence.” The SEC has even issued
On Monday, the National Association of Corporate Directors released a Blue Ribbon Commission Report providing substantive guidance for corporate directors on board oversight of artificial intelligence. In the following guest post, Michael W. Peregrine, a partner at the McDermott Will & Emery law firm, reviews the Blue Ribbon Commission report and summarizes
After the November 2022 debut of ChatGPT, the public commentariat pitched itself into a virtual frenzy declaring AI’s transformative or even catastrophic potential. However, from my perspective, the reality of AI, at least so far, is that, while AI-powered tools are sometimes impressive and occasionally amazing, the AI-generated results are sometimes clunky or non-responsive and
Investors and entrepreneurs everywhere are impressed with the potentially transformative promise of artificial intelligence. Unfortunately, AI’s seemingly unlimited promise has also attracted companies and other players who, in order to participate in the current AI wave, overstate their AI capabilities. These kinds of statements have already attracted the attention of plaintiffs’ lawyers and the SEC.
— A Brief Analysis on the AI Safety Governance Framework
1. Background and Structure of AI Framework
On September 9, 2024, the National Technical Committee 260 on Cybersecurity of Standardization Administration of China (“TC260”) has promulgated the AI[1] Safety Governance Framework (V1.0) (the “AI Framework), which aims to implement the Global AI Governance Initiative
In recent months, the SEC Chair and other government officials have made it clear that they are closely watching for companies that try to catch the AI wave by making exaggerated or false claims about the AI capabilities of their products or services. In the latest example of the crack down on these kinds of
1. Trends and Overview
1.1 Sanctions Market
In the past 12 months, the sanctions sector has undergone significant changes and growth, with a notable increase in US sanctions imposed on Chinese companies. This surge reflects the escalating geopolitical tensions between the US and China. The US has broadened its scope of sanctions to include more
SEC officials have for months been signaling their concerns about companies overstating their AI credentials, a phenomenon that the officials and others have called “AI washing.” As set out and partially transcribed in a September 5, 2024, TheCorporateCounsel.net post (here), SEC Chair Gary Gensler recently recorded a video in which he reiterated concerns
Every year after Labor Day, I take a step back to survey the most important current trends and developments in the world of Directors’ and Officers’ liability and insurance. This year’s review is set out below. As the following discussion shows, this is a particularly interesting time in the world of D&O.
The SEC has already made it clear that it intends to pursue enforcement actions against firms that misrepresent their Artificial Intelligence (AI) capabilities. In the latest example of the SEC’s commitment in that regard, earlier this week the SEC filed an enforcement action against an investment advisory firm, its holding company, and the two firms’