Jun 20, 02:30 AM

SEC and DOJ Crackdown on AI-Washing Claims Poses D&O Risks, Coverage Challenges

The Hunton Policyholder’s Guide to Artificial Intelligence highlights the recent crackdown by the SEC on AI-washing claims, which present significant D&O risks and potential coverage challenges. The guide, discussed in a blog post by BeyondTheAiNews and The National Law Review, provides insights into the impact of these regulatory actions on the insurance industry. Since March, there has been a spate of US enforcement actions targeting companies that overhype artificial intelligence to investors. These actions, which also involve the DOJ, are expected to increase, potentially affecting professional and management liability insurance lines.

#SEC #BeyondTheAiNews #The National Law Review #US

Written with ChatGPT (GPT-4o).