---
title: "Check AI-capability claims in a fundraising document against the SEC's AI-washing release"
url: "https://ailawframework.com/practice/capital-markets-and-securities-ecm-dcm-and-disclosure/review-fundraising-documents-for-ai-washing-disclosure-risk/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A4-B8-1-US"
practice_area: "Capital Markets & Securities — ECM/DCM and Disclosure"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Check AI-capability claims in a fundraising document against the SEC's AI-washing release

> List every statement that the issuer or adviser uses artificial intelligence, machine learning or an automated model, and the system record, if any, that the file contains for that statement.…

Canonical page: https://ailawframework.com/practice/capital-markets-and-securities-ecm-dcm-and-disclosure/review-fundraising-documents-for-ai-washing-disclosure-risk/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Capital Markets & Securities — ECM/DCM and Disclosure](https://ailawframework.com/practice/capital-markets-and-securities-ecm-dcm-and-disclosure.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | List every statement that the issuer or adviser uses artificial intelligence, machine learning or an automated model, and the system record, if any, that the file contains for that statement. Do not rewrite the disclosure. |
| What the lawyer must review | On 18 March 2024 the SEC announced settled charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for false and misleading statements about their use of artificial intelligence (Release 2024-36). Delphia agreed to a civil penalty of $225,000 and Global Predictions to $175,000. The release says the firms marketed AI capabilities they did not have, and that a public issuer making claims about its AI adoption must remain vigilant about misstatements that may be material. Rule 10b-5 prohibits an untrue statement of a material fact, or a misleading omission, in connection with the purchase or sale of a security. In a registration statement, Securities Act § 11 (15 U.S.C. § 77k) reaches an untrue statement or omission of a material fact when that part became effective. You decide what may be said, and only from the system record. |
| Written for | United States |
| Applies to | [Review fundraising documents for "AI-washing" disclosure risk](https://ailawframework.com/practice/capital-markets-and-securities-ecm-dcm-and-disclosure/review-fundraising-documents-for-ai-washing-disclosure-risk.md) |

## Checking plan

- What the AI does: List every statement that the issuer or adviser uses artificial intelligence, machine learning or an automated model, and the system record, if any, that the file contains for that statement. Do not rewrite the disclosure.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Release 2024-36 is an adviser settlement under the Advisers Act and the Marketing Rule. The same release warns public issuers about material AI misstatements. Do not treat the penalty amounts as a tariff for issuers.
- The linked orders are Delphia IA-6573 and Global Predictions IA-6574, cited from the release. Open the order before quoting a finding.

## Sources

- [SEC press release 2024-36, charges against two investment advisers for false statements about artificial intelligence (18 March 2024)](https://www.sec.gov/newsroom/press-releases/2024-36) (checked 2026-10-22)
- [17 CFR § 240.10b-5, employment of manipulative and deceptive devices](https://www.law.cornell.edu/cfr/text/17/240.10b-5) (checked 2026-10-22)
- [15 U.S.C. § 77k, civil liabilities on account of a false registration statement](https://www.law.cornell.edu/uscode/text/15/77k) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*