---
title: "Review checklist for AI-related statements in disclosure documents and annual reports ('AI washing')"
url: "https://ailawframework.com/precedents/capital-markets-and-securities-ecm-dcm-and-disclosure/ai-washing-review-checklist"
type: "precedent"
site: "AI Law Framework"
id: "a4-ai-washing-review-checklist"
area_id: "A4"
kind: "checklist"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Review checklist for AI-related statements in disclosure documents and annual reports ('AI washing')

> Checklist for testing every statement an issuer makes about its use of AI against evidence, covering capability, performance, revenue, governance and risk-factor claims, with the Australian misleading conduct tests and…

Canonical page: https://ailawframework.com/precedents/capital-markets-and-securities-ecm-dcm-and-disclosure/ai-washing-review-checklist  
Law stated as at: 2026-10-17

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

Checklist for testing every statement an issuer makes about its use of AI against evidence, covering capability, performance, revenue, governance and risk-factor claims, with the Australian misleading conduct tests and a US enforcement example.

## Key facts

- Kind: Checklist. Steps or checks to work through and tick off.
- Practice area: [Capital Markets & Securities — ECM/DCM and Disclosure](https://ailawframework.com/precedents/capital-markets-and-securities-ecm-dcm-and-disclosure.md)
- Jurisdictions: Australia, United States
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 6 authorities it cites, for Australia and United States.

## When to use it

Use before lodging a prospectus, annual report, investor presentation or announcement that describes the issuer’s AI capabilities or strategy. Also useful for website and marketing claims that investors may rely on.

## How AI may be used

AI may find and list AI-related claims across documents. Whether each claim is supported is checked against evidence by a lawyer and the issuer’s technical staff.

**AI may:**

- Find and list every AI-related statement across the prospectus, annual report, presentations and website, with locations
- Flag superlatives, quantified claims and forward-looking statements about AI
- Compare AI claims across documents for inconsistency

**AI must not:**

- Must not decide that a claim is substantiated
- Must not draft new capability or performance claims
- Must not process unpublished technical or commercial information in an unapproved tool

**The lawyer checks:**

- Each claim traced to evidence a technical owner has signed off
- Forward-looking AI statements have documented reasonable grounds
- Risk factors describe the issuer’s real AI dependencies and regulatory exposure

## Authorities

- [Corporations Act 2001 (Cth) s 299A (annual directors' report: listed entities)](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Corporations Act 2001 (Cth) ss 728, 1041E, 1041H](https://www.legislation.gov.au/C2004A00818/latest/text)
- [Australian Securities and Investments Commission Act 2001 (Cth) ss 12BB, 12DA](https://www.legislation.gov.au/C2004A00819/latest/text)
- [Competition and Consumer Act 2010 (Cth) Sch 2 (Australian Consumer Law) ss 4, 18, 29](https://www.legislation.gov.au/C2004A00109/latest/text)
- [ASIC Regulatory Guide 247 Effective disclosure in an operating and financial review](https://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-247-effective-disclosure-in-an-operating-and-financial-review)
- [US Securities and Exchange Commission, press release 2024-36 (18 March 2024), settled charges against Delphia (USA) Inc and Global Predictions Inc](https://www.sec.gov/newsroom/press-releases/2024-36)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/capital-markets-and-securities-ecm-dcm-and-disclosure/ai-washing-review-checklist and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

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