{"id":255211,"date":"2025-05-24T10:42:30","date_gmt":"2025-05-24T10:42:30","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/secs-ai-stance-holds-steady-under-new-leadership\/"},"modified":"2025-05-24T10:42:30","modified_gmt":"2025-05-24T10:42:30","slug":"secs-ai-stance-holds-steady-under-new-leadership","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=255211","title":{"rendered":"SEC\u2019s AI Stance Holds Steady Under New Leadership"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Despite headlines about President Trump rescinding the Biden administration\u2019s executive order on artificial intelligence, the SEC\u2019s stance on AI-related disclosures hasn\u2019t shifted much. If anything, its focus has sharpened.<\/p>\n<p>The Biden-era Executive Order on <a href=\"https:\/\/www.federalregister.gov\/documents\/2023\/11\/01\/2023-24283\/safe-secure-and-trustworthy-development-and-use-of-artificial-intelligence\">Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence<\/a> aimed to embed ethical guidelines into government use of AI. It emphasized public protection, data privacy and civil rights, while requiring federal agencies to designate Chief AI Officers and adhere to rigorous oversight processes. That order is now <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/01\/removing-barriers-to-american-leadership-in-artificial-intelligence\/\">off the books<\/a>, but the SEC <a href=\"https:\/\/www.apaservices.org\/practice\/business\/technology\/on-the-horizon\/ai-executive-orders\">remained firm<\/a> in its enforcement approach to AI-related investor disclosures.<\/p>\n<p>The agency\u2019s interest in AI has only deepened\u2014especially around the emerging issue of \u201cAI washing,\u201d a term that refers to companies exaggerating their use of AI in ways that could mislead investors. <a href=\"https:\/\/www.law360.com\/securities\/articles\/2340923\/sec-focused-on-rooting-out-ai-abuse-agency-atty-says?copied=1\">According to Madiha Zuberi<\/a>, an enforcement attorney in the SEC\u2019s cybersecurity and emerging technologies unit, the SEC is continuing to build on the prior administration\u2019s efforts to oversee AI-related disclosures. In recent public remarks, Zuberi listed predictive analytics, trading strategies and AI-infused investment advice as some of the subjects that are commanding the agency\u2019s attention.<\/p>\n<p>\u201cWe\u2019re looking at whether there\u2019s transparency around the technology, whether it\u2019s described accurately, whether there\u2019s responsible communications to customers,\u201d Zuberi said. \u201cIt\u2019s easy to use a term like \u2018AI,\u2019 but is it automation of code or is it actually AI?\u201d<\/p>\n<p>In that sense, the SEC\u2019s recent enforcement actions related to AI sound familiar. The commission filed <a href=\"https:\/\/apps.intelligize.com\/SecuritiesRegulationAndCompliance?key=eyJ0eXBlIjoiU0FUX0RPQ1VNRU5UIiwiaWQiOjE3MjMwMTYsImlzU2F0RG9jVmlldyI6dHJ1ZSwia2V5d29yZHMiOiJuYXRlIiwiaGFzU25pcHBldHMiOnRydWUsInJlc3VsdFR5cGUiOjB9\">a complaint<\/a> last month charging the former chief executive of the shopping app Nate Inc. with perpetrating a $40 million fraud on investors tied to claims about its AI technology. A few weeks later, <a href=\"https:\/\/www.weil.com\/-\/media\/mailings\/2025\/q2\/recent-sec-and-doj-enforcement-actions-and-charges-signal-that-aiwashing-is-firmly-within-the-crossh.pdf\">the founder of PGI Global<\/a> was indicted for allegedly misleading investors about the company\u2019s crypto-trading platform, which was purportedly developed using AI technology. (The SEC has been active on this front for a while\u2014just look at the <a href=\"https:\/\/www.law360.com\/articles\/1814677\/2-investment-firms-to-pay-sec-400k-for-ai-washing-\">AI washing settlements<\/a> it reached near the end of the previous administration.)<\/p>\n<p>Citing \u201ca significant increase in the number of companies that mention artificial intelligence in their annual reports,\u201d <a href=\"https:\/\/www.sec.gov\/newsroom\/whats-new\/gerding-state-disclosure-review-062424\">Erik Gerding<\/a>, the director of the SEC Division of Corporation Finance at the time, indicated last year the agency planned to take a more rigorous approach to assessing such disclosures. Gerding said SEC staff members would pay close attention to aspects like how companies defined AI and its positive impacts on their performance and outlook.<\/p>\n<p>The SEC\u2019s warnings about AI washing are showing early signs of having their desired effect in corporate filings. In its annual report, AI lending platform <a href=\"https:\/\/apps.intelligize.com\/SECFilings\/View\/Filings\/22311062\">Upstart Holdings Inc.<\/a>, made note of the SEC\u2019s aggressive enforcement actions regarding AI washing. Similarly, <a href=\"https:\/\/apps.intelligize.com\/SECFilings\/View\/Filings\/22396958\">Monogram Technologies Inc.<\/a> in the risk factors section of its latest annual report referred to the potential fallout that would result from failing \u201cto clearly communicate the actual capabilities and limitations of our AI technologies.\u201d<\/p>\n<p>As Monogram suggested in its discussion, the reality that AI technology is still a relatively new technology could complicate companies\u2019 efforts to avoid overselling what their AI can actually do. For now, it doesn\u2019t look like the SEC is likely to show leniency for such mistakes, even when the hype is well-intentioned.<\/p>\n<\/p><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Despite headlines about President Trump rescinding the Biden administration\u2019s executive order on artificial intelligence, the SEC\u2019s stance on AI-related disclosures hasn\u2019t shifted much. If anything, its focus has sharpened. The Biden-era Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence aimed to embed ethical guidelines into government use of AI. It [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":255212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[96],"tags":[11734,11655,23757,29635,11103],"dealstore":[],"offerexpiration":[],"class_list":["post-255211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-holds","tag-leadership","tag-secs","tag-stance","tag-steady"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC\u2019s AI Stance Holds Steady Under New Leadership - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=255211\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC\u2019s AI Stance Holds Steady Under New Leadership - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Despite headlines about President Trump rescinding the Biden administration\u2019s executive order on artificial intelligence, the SEC\u2019s stance on AI-related disclosures hasn\u2019t shifted much. If anything, its focus has sharpened. The Biden-era Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence aimed to embed ethical guidelines into government use of AI. It [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fivemor.com\/?p=255211\" \/>\n<meta property=\"og:site_name\" content=\"Som2ny Network\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-24T10:42:30+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/fivemor.com\/?p=255211#article\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/?p=255211\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\"},\"headline\":\"SEC\u2019s AI Stance Holds Steady Under New Leadership\",\"datePublished\":\"2025-05-24T10:42:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=255211\"},\"wordCount\":552,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=255211#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg\",\"keywords\":[\"Holds\",\"Leadership\",\"SECs\",\"stance\",\"Steady\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/fivemor.com\/?p=255211#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fivemor.com\/?p=255211\",\"url\":\"https:\/\/fivemor.com\/?p=255211\",\"name\":\"SEC\u2019s AI Stance Holds Steady Under New Leadership - Som2ny Network\",\"isPartOf\":{\"@id\":\"https:\/\/fivemor.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/fivemor.com\/?p=255211#primaryimage\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/?p=255211#primaryimage\"},\"thumbnailUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg\",\"datePublished\":\"2025-05-24T10:42:30+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/fivemor.com\/?p=255211#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/fivemor.com\/?p=255211\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/?p=255211#primaryimage\",\"url\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg\",\"contentUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg\",\"width\":1200,\"height\":675},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/fivemor.com\/?p=255211#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/fivemor.com\/?bp_activities=1\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"SEC\u2019s AI Stance Holds Steady Under New Leadership\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/fivemor.com\/#website\",\"url\":\"https:\/\/fivemor.com\/\",\"name\":\"Som2ny Network\",\"description\":\"Daily Deals\",\"publisher\":{\"@id\":\"https:\/\/fivemor.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/fivemor.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/fivemor.com\/#organization\",\"name\":\"Som2ny Network\",\"url\":\"https:\/\/fivemor.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png\",\"contentUrl\":\"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png\",\"width\":300,\"height\":86,\"caption\":\"Som2ny Network\"},\"image\":{\"@id\":\"https:\/\/fivemor.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/fivemor.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png\",\"caption\":\"admin\"},\"sameAs\":[\"https:\/\/fivemor.com\"],\"url\":\"https:\/\/fivemor.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"SEC\u2019s AI Stance Holds Steady Under New Leadership - Som2ny Network","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/fivemor.com\/?p=255211","og_locale":"en_US","og_type":"article","og_title":"SEC\u2019s AI Stance Holds Steady Under New Leadership - Som2ny Network","og_description":"Despite headlines about President Trump rescinding the Biden administration\u2019s executive order on artificial intelligence, the SEC\u2019s stance on AI-related disclosures hasn\u2019t shifted much. If anything, its focus has sharpened. The Biden-era Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence aimed to embed ethical guidelines into government use of AI. It [&hellip;]","og_url":"https:\/\/fivemor.com\/?p=255211","og_site_name":"Som2ny Network","article_published_time":"2025-05-24T10:42:30+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg","type":"image\/jpeg"}],"author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/fivemor.com\/?p=255211#article","isPartOf":{"@id":"https:\/\/fivemor.com\/?p=255211"},"author":{"name":"admin","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371"},"headline":"SEC\u2019s AI Stance Holds Steady Under New Leadership","datePublished":"2025-05-24T10:42:30+00:00","mainEntityOfPage":{"@id":"https:\/\/fivemor.com\/?p=255211"},"wordCount":552,"commentCount":0,"publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"image":{"@id":"https:\/\/fivemor.com\/?p=255211#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg","keywords":["Holds","Leadership","SECs","stance","Steady"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/fivemor.com\/?p=255211#respond"]}]},{"@type":"WebPage","@id":"https:\/\/fivemor.com\/?p=255211","url":"https:\/\/fivemor.com\/?p=255211","name":"SEC\u2019s AI Stance Holds Steady Under New Leadership - Som2ny Network","isPartOf":{"@id":"https:\/\/fivemor.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/fivemor.com\/?p=255211#primaryimage"},"image":{"@id":"https:\/\/fivemor.com\/?p=255211#primaryimage"},"thumbnailUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg","datePublished":"2025-05-24T10:42:30+00:00","breadcrumb":{"@id":"https:\/\/fivemor.com\/?p=255211#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/fivemor.com\/?p=255211"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/?p=255211#primaryimage","url":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg","contentUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2025\/05\/eagle-sharp-focus-1200.jpg","width":1200,"height":675},{"@type":"BreadcrumbList","@id":"https:\/\/fivemor.com\/?p=255211#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/fivemor.com\/?bp_activities=1"},{"@type":"ListItem","position":2,"name":"SEC\u2019s AI Stance Holds Steady Under New Leadership"}]},{"@type":"WebSite","@id":"https:\/\/fivemor.com\/#website","url":"https:\/\/fivemor.com\/","name":"Som2ny Network","description":"Daily Deals","publisher":{"@id":"https:\/\/fivemor.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/fivemor.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/fivemor.com\/#organization","name":"Som2ny Network","url":"https:\/\/fivemor.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/#\/schema\/logo\/image\/","url":"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png","contentUrl":"https:\/\/fivemor.com\/wp-content\/uploads\/2026\/07\/4a0953c4-logo-300x86-1.png","width":300,"height":86,"caption":"Som2ny Network"},"image":{"@id":"https:\/\/fivemor.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/fivemor.com\/#\/schema\/person\/b85e3c3dc0e1daea076524dc8810c371","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/fivemor.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/729ae85bf62b9917e93538db2f2688ca?s=96&r=g&default=https%3A%2F%2Ffivemor.com%2Fwp-content%2Fplugins%2Fbuddypress-first-letter-avatar%2Fimages%2Fdefault%2F96%2Flatin_a.png","caption":"admin"},"sameAs":["https:\/\/fivemor.com"],"url":"https:\/\/fivemor.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts\/255211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=255211"}],"version-history":[{"count":0,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/posts\/255211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=\/wp\/v2\/media\/255212"}],"wp:attachment":[{"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=255211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=255211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=255211"},{"taxonomy":"dealstore","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fdealstore&post=255211"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/fivemor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fofferexpiration&post=255211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}