AI Capability Claims Under Fire: Preparing and Responding to Securities, FTC, and Consumer Litigation Risk

This CLE webinar will discuss prevention and response to litigation and regulatory challenges when companies promote AI capabilities or progress. The panel will examine recent SEC enforcement over so-called "AI-washing," FTC actions against unsupported accuracy/performance claims, and developing securities and consumer class actions targeting AI-related statements. The experts will cover best practices to avoid risk, establish process controls, and manage substantiation.

AI features and implementation have moved from R&D to revenue and public filings quicker than some companies have built substantiation and disclosure controls. Plaintiffs and regulators are now testing statements about capability, accuracy/performance, automation vs. human-in-the-loop, and comparatives ("safer than humans," "outperforms analysts"). Poor systems and controls lead to claims that blur present capability with road-map aspiration or that leave out materially important capability qualifications. As filings accelerate, companies need practical guardrails to avoid over-promising, document what the technology does and does not do today, and respond quickly and credibly when challenged.

Listen as our panel provides best practices for cross-functional review systems and document/substantiation controls, drafting to avoid claims, and executing a fast, defensible response to any action.