U.S. regulators, including the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), are intensifying their scrutiny of artificial intelligence (AI) claims by companies. The SEC issued a warning against 'AI washing', a practice where firms exaggerate the use of AI in their products or services. This move was highlighted by the SEC charging two companies for falsely claiming the use of AI, marking a significant enforcement action. Additionally, the DOJ, led by Ismail Ramsey, the U.S. attorney for the Northern District of California, announced a targeted crackdown on AI and tech startups that defraud investors, particularly focusing on those aiming for initial public offerings (IPOs). Toronto-based investment firm Delphia Technologies settled with the U.S. regulator over allegations of 'AI-washing'. The regulatory actions signal a growing concern over the misrepresentation of AI capabilities in the financial and tech sectors, with authorities signaling that these initial actions are just the beginning of a broader regulatory focus.