Bracewell’s David Shargel shared with Tech Brew how companies face the increased risk of litigation if found to be overstating their artificial intelligence capabilities.
Beyond enforcement actions, companies also face a risk of shareholder lawsuits, much like with “greenwashing” or, in rarer cases, “cloud-washing” according to Shargel.
The Securities and Exchange Commission has begun cracking down on companies that make false claims about AI in recent months following a series of warnings to publicly traded companies from Chair Gary Gensler.
