AI-washing moves from hype to liability

Partner Ashwin Ram has authored “AI-washing Moves from Hype to Liability,” published April 21, 2026. As companies increasingly tout artificial intelligence capabilities, regulators and plaintiffs’ attorneys are intensifying scrutiny, transforming what was once a disclosure issue into a growing source of civil and criminal exposure. The article traces a three-wave enforcement trend from SEC administrative actions to parallel SEC and DOJ prosecutions, alongside a surge in private securities litigation. It examines the factors that elevate AI-washing into criminal fraud, including orchestrated deception, capital-raising misstatements, and parallel regulatory investigations, and highlights key risks and strategic considerations for companies and counsel navigating this rapidly evolving enforcement landscape.

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