Partner James T. Christie spoke with Bloomberg Law about the rise in securities litigation surrounding artificial intelligence in the article “AI Stock Swings Emerge as Legal Focal Point After DeepSeek Chaos.”

James weighs in on the recent trend of AI washing, when companies exaggerate their AI capabilities or benefits, in the wake of the controversy surrounding DeepSeek’s AI chatbot.  While AI washing is growing rampant in publicly traded companies, with at least 43 securities cases over AI claims having been filed since March 2020, James says, “AI washing is much more susceptible to claims under the Securities Act of 1933 because when it’s an offering, the company is relatively new and you have that added factor of investors not having a full understanding of what a company does.”  He expects that with a narrower approach to SEC enforcement, securities litigators will be closely watching companies who heavily invest in AI.