business opportunities. The defendants agreed to pay more than $21 million in damages and are now permanently banned from selling ecommerce business opportunities. The SEC is separately targeting investment advisors, broker-dealers and public executives that incorrectly tout their use of AI. “We’re at the point where this is a huge focus of every part of the SEC, including enforcement,” said Akin Gump Strauss Hauer & Feld partner Brian Daly via Legal.io. In March, investment advisors Global Predictions and Delphia agreed to a $400,000 settlement with the SEC following claims that they provided false and misleading statements about AI. And in June, the SEC charged AI recruitment startup Joonko founder Ilit Raz with defrauding investors and making incorrect claims about the company’s use of AI. “As more and more people seek out AI-related investment opportunities, we will continue to police the markets against AI-washing and the type of misconduct alleged in today’s complaint,” stated SEC Division of Enforcement director Gurbir Grewal. “But at the same time, it is critical for investors to beware of companies exploiting the fanfare around artificial intelligence to raise funds.” In a recent high-profile example of AI washing, Amazon faced criticism after reports surfaced that its Just Walk Out technology, which enables cashless grocery store payments, relies on roughly 1,000 human workers. The company refuted the AI washing claims, asserting that its employees merely help validate certain transactions. Regardless, Amazon generated considerable backlash for not disclosing the human involvement in its operations. This is just the tip of the iceberg with AI washing. The practice is widespread and has been occurring for years. Only now, it has an ugly new buzzword, similar to how “greenwashing” describes dubious environmental benefits. As FTC Division of Advertising Practices attorney Michael Atleson pointed out, AI is an “ambiguous term with many possible definitions.” While it can refer to a variety of tools and techniques, it’s ultimately just a marketing term. “AI hype is playing out today across many products, from toys to cars to chatbots and a lot of things in between,” explained Atleson on the FTC blog. “Breathless media accounts don’t help, but it starts with the companies that do the developing and selling. EMERGENT Emerging Tech Impact Radar – Artificial Intelligence Source: Gartner, January 2024 Data-centric AI technologies AI trust technologies GenAI-centric technologies GenAI-native applications Expert VAs Smart robots Citizen data engineer Knowledge graphs Responsible AI AI TRiSM Multiagent generative systems (MAGS) Multistage LLM chains Massive LLMs Multimodal GenAI Vision transformers User-in-theloop AI Hallucination management Provenance detectors Sustainable AI Data fabric Fully autonomous driving Smart Space Model hubs Self-supervised learning Firstprinciple AI Neuromorphic computing Composite AI AI chips Deepfakes BMIs Decision intelligence Synthetic data AI-enabled technollogies Core AI technologies 6 to 8 Years 3 to 6 Years 1 to 3 Years Now (0 to 1 Years) Low Medium High Very High Current AI Efforts and Future Investment Source: CompTIA, 2024 IT outlook Aggressively pursuing integration 22% Limited implementation 33% Exploration 45% Significant decrease Moderate decrease No change Moderate increase Significant increase Future Investments Current Adoption 25% 37% 25% 7% 7% 26 THE CHANNEL MANAGER’S PLAYBOOK
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