# Gensler 'AI washing' remarks at Yale (Feb 2024): AI, Finance, Movies, and the Law — Prepared Remarks Before the Yale Law School

Source: https://www.bankingnewsai.com/ai-regulation/documents/sec-gensler-ai-washing-speech-2024
Last updated: Aug 26, 2026

On February 13, 2024 SEC Chair Gary Gensler used a Yale Law School speech to put 'AI washing' on the record as a securities-law problem: public companies and investment advisers that overstate their AI use or make boilerplate AI disclosures risk violating the antifraud provisions. He also flagged 'macro' risks — model and data-source monoculture leading to herding — and 'micro' issues of deception, hallucination, and conflicts in adviser and broker AI. The Delphia and Global Predictions settlements followed five weeks later.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [SEC](https://www.bankingnewsai.com/ai-regulation/sec) |
| Type | Speech |
| Status | Final |
| Published | Feb 13, 2024 |
| Applies to | Public companies (including bank holding companies), broker-dealers, and investment advisers |
| Official text | https://www.sec.gov/newsroom/speeches-statements/gensler-ai-021324 |

## Key points

- Coined the enforcement frame: 'AI washing' — claims about AI that are false, misleading, or not particularized to the company — can breach securities laws.
- Told issuers to ask whether AI discussed on earnings calls or with the board is material, and if so to disclose it specifically rather than generically.
- Warned advisers and brokers that AI does not change their fiduciary or Reg BI obligations, including managing conflicts in recommendation engines.
- Raised systemic concern about dependence on a handful of foundation models and data aggregators.

## What changed for banks

It converted AI disclosure from a marketing question into a liability question for bank holding companies and their advisory arms. Investor-relations and compliance teams began reviewing 10-K risk factors, MD&A, and adviser marketing for AI claims that could not be substantiated.

## Use cases it governs

- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)
- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)
- [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk)

## FAQ

### When did the SEC first warn about AI washing?

Chair Gensler's February 13, 2024 Yale Law School speech was the first extended public statement; the first settled cases (Delphia and Global Predictions) came March 18, 2024.

### Does AI washing apply to banks?

Yes, to any SEC-reporting bank holding company's filings and public statements, and to bank-affiliated advisers' and broker-dealers' marketing.

## Related documents

- [Atkins remarks at Investor Advisory Committee (Sep 2026)](https://www.bankingnewsai.com/ai-regulation/documents/sec-atkins-iac-ai-disclosure-remarks-2026-09) — Remarks at the SEC Investor Advisory Committee Meeting on AI Technologies and the Public Markets Information Ecosystem (Sep 10, 2026)
- [Atkins remarks at FSOC AI roundtable (Mar 2026)](https://www.bankingnewsai.com/ai-regulation/documents/sec-atkins-fsoc-ai-roundtable-2026) — Remarks at Financial Stability Oversight Council Artificial Intelligence Innovation Series Roundtable on Strategy and Governance Principles (Mar 4, 2026)
- [Investor Advisory Committee AI disclosure recommendation](https://www.bankingnewsai.com/ai-regulation/documents/sec-iac-ai-disclosure-recommendation-2025) — Recommendation of the SEC Investor Advisory Committee Regarding the Disclosure of Artificial Intelligence's Impact on Operations (Dec 4, 2025)
- [Division of Examinations FY2026 Priorities](https://www.bankingnewsai.com/ai-regulation/documents/sec-exam-priorities-fy2026) — Examination Priorities: Fiscal Year 2026 — Division of Examinations (Nov 17, 2025)
- [SEC withdrawal of proposed rules (33-11377)](https://www.bankingnewsai.com/ai-regulation/documents/sec-pda-proposal-withdrawal-33-11377) — Withdrawal of Proposed Regulatory Actions — including the predictive data analytics conflicts proposal (Jun 12, 2025)
- [SEC v. Saniger (Nate, Inc.)](https://www.bankingnewsai.com/ai-regulation/documents/sec-nate-saniger-ai-washing-2025) — SEC Charges Founder of Nate, Inc. with Fraud Over False Claims About the Company's Use of Artificial Intelligence (Apr 9, 2025)
- [Presto Automation AI-washing order](https://www.bankingnewsai.com/ai-regulation/documents/sec-presto-automation-ai-washing-2025) — SEC Charges Restaurant-Technology Company Presto Automation for Misleading Statements About AI Product (Jan 14, 2025)
- [Division of Examinations FY2025 Priorities](https://www.bankingnewsai.com/ai-regulation/documents/sec-exam-priorities-fy2025) — Examination Priorities: Fiscal Year 2025 — Division of Examinations (Oct 21, 2024)

Last reviewed Aug 26, 2026. Cite the official text (https://www.sec.gov/newsroom/speeches-statements/gensler-ai-021324) for the rule and this page for the summary and dates.

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