The SEC charged two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements, on their websites, in social media, and in SEC filings about their purported use of AI. The SEC brought the cases under the Marketing Rule of the Investment Advisers Act for making unsubstantiated claims, failing to disclose conflicts of interest resulting from relationships with individuals giving testimonials, and advertising hypothetical performance on the firm’s public website without implementing policies and procedures required under the rule, together with other charges of anti-fraud provisions. The advisers settled the cases agreeing to pay civil penalties of $175,000 and $225,000.