
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.
Sources
Tech Law NewsSEC and DOJ Heighten Focus on AI Washing https://t.co/jU1g90k230 | by @bclplaw
Carter DunlapA spate of recent US enforcement actions is likely just the beginning of a crackdown on companies overhyping artificial intelligence to investors. https://t.co/teDsWZkm6M via @markets
Law360Recent regulatory actions and shareholder suits over alleged misrepresentations of artificial intelligence use, or what is known as AI washing, may be the first wave of a surge of claims that will hit professional and management liability insurance lines. https://t.co/eLLwdvKGUo https://t.co/bHuZvTSjWS
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