Powered by CrowdCheck human intelligence*
Companies hyping their AI capabilities should tread carefully—especially when investors are involved. The SEC recently charged Presto Automation Inc. for misleading claims about its AI-powered drive-thru ordering system. The company touted fully automated voice ordering, but in reality, human intervention was often required. This kind of “AI washing” can lead to serious legal trouble.
The key takeaway? If your company claims to use AI, those claims must be accurate and verifiable. Exaggerating capabilities to attract investors or customers can result in regulatory action, reputational damage, and financial penalties. The SEC is making it clear: misleading AI claims won’t go unchecked.
As AI becomes a bigger part of business and finance, transparency is crucial. Whether you’re an executive, marketer, or their counsel, it’s worth asking—does the AI actually do what’s being promised? If not, it’s time to rethink the message before regulators step in.
For a recent case in point, see the SEC’s enforcement action against Presto here.
*For the record this post was primarily written by AI powered by human intelligence.
CrowdCheck, Inc. © 2025