PUBLIC-RECORD CASE FILE · AI washing
Delphia and Global Predictions: the SEC’s AI-washing settlements
SEC settlement · Record dated 2024-03-18 · Sources checked 11 October 2026
What the public record shows
On March 18, 2024, the SEC announced settled charges against Delphia and Global Predictions. Its orders found false or misleading statements about the advisers’ AI capabilities. Delphia agreed to a $225,000 civil penalty and Global Predictions to $175,000.
Where the promise broke
The SEC challenged Delphia’s descriptions of using client data in AI-driven investing and Global Predictions’ claimed AI advisory and forecasting capabilities.
What this record does not establish
Both firms settled without admitting or denying the SEC’s findings. These administrative settlements are not criminal fraud convictions.
The buyer lesson
Separate a model’s existence from its actual role in a decision. Ask which data it uses, how predictions are evaluated, and whether marketing describes an implemented process.
Sources: SEC orders and settlement announcement · 18 March 2024