Today: May 30, 2024
Today: May 30, 2024

Companies need guardrails, especially if using AI, US SEC chair says

Share This
Companies need guardrails, especially if using AI, US SEC chair says
February 14, 2024
Reuters

WASHINGTON (Reuters) - Companies need to ensure they are disclosing accurate information, especially if they are using artificial intelligence, the head of the U.S. Securities and Exchange Commission said on Wednesday after Lyft was forced to correct a major forecast error.

SEC chair Gary Gensler, asked about the incident, told CNBC in an interview that he could not comment on any specific case but that in general companies have a responsibility to ensure they release correct details about themselves and their finances.

"It's the responsibility of companies to ensure that they put out information in the public that's accurate," he said.

Rideshare company Lyft's forecast error in a press release on Tuesday briefly sent its shares up 67% before the mistake was corrected, with analysts and experts on Wednesday saying the incident could invite scrutiny.

"There's still a responsibility to ensure that you have accurate information that you're putting out and, with the use of AI, that you have certain guardrails in place," Gensler told CNBC.

(Reporting by Susan Heavey; Editing by Doina Chiacu and Chizu Nomiyama)

Popular

IRS makes free tax return program permanent and is asking all states to join in 2025

The IRS will make permanent the free electronic tax return filing system that it experimented with this year

IRS makes free tax return program permanent and is asking all states to join in 2025

Mortgage rates snap three-week pullback, pushing average rate on a 30-year home loan back above 7%

The average rate on a 30-year mortgage moved back above 7% this week, a setback for home shoppers at a time when the U.S. housing market is already slowing under the strain of elevated home loan borrowing costs and rising prices

Mortgage rates snap three-week pullback, pushing average rate on a 30-year home loan back above 7%

Supreme Court gives homeowners another chance in escrow dispute with Bank of America

The Supreme Court has given homeowners another chance to force Bank of America and other large banks to pay interest on mortgage escrow accounts

Supreme Court gives homeowners another chance in escrow dispute with Bank of America

Fidelity won't levy proposed fees on purchases from boutique ETF firms, sources say

Fidelity Investments will not impose new fees on investors buying exchange-traded funds (ETFs) issued by a group of smaller asset management firms, having made progress on

Fidelity won't levy proposed fees on purchases from boutique ETF firms, sources say

Tesla makes push to roll out advanced FSD self-driving in China

Tesla is preparing to register its 'Full Self-Driving' software with authorities in China in the run up to its planned rollout of the technologically advanced feature this year, three

Tesla makes push to roll out advanced FSD self-driving in China

Related

Boeing to detail quality, training improvements in FAA meeting, sources say

Boeing to detail quality, training improvements in FAA meeting, sources say

Volkswagen distributor D'Ieteren flags softer auto glass repair demand in N America

Volkswagen distributor D'Ieteren flags softer auto glass repair demand in N America

SK Group chief ordered to pay $1 billion in divorce case; shares in SK Inc soar

SK Group chief ordered to pay $1 billion in divorce case; shares in SK Inc soar

US Steel, Nippon Steel receive all non-US approvals for merger

US Steel, Nippon Steel receive all non-US approvals for merger
- Advertisement -
Advertisement: Limited Time Offer