Global Predictions: the first regulated AI financial advisor, allegedly
The same SEC action charged a second adviser for marketing itself as the first regulated AI financial advisor, with AI-driven forecasts it could not support. It paid a $175,000 penalty. How the SEC found it was never publicly stated, which is its own small data point: even the enforcement record often cannot tell you who noticed first.
What the verified record says.
- Organizations
- Global Predictions Inc.; US Securities and Exchange Commission
- When
- 2023Resolved March 18, 2024
- Failure class
- False claims about the AI false-ai-claims
- Discovered by
- A regulator regulator Not caught by the organization running the AI
- Missing control
- Honest claims. The control here is not technical. Full definition and the other incidents in this group → Watch this kind of control catch a planted failure →
- What would have caught it
- A marketing claim about what an AI advisor does is reviewed against the system's actual operation before it is published, and reviewed again whenever the marketing changes.
- Sources
-
- SEC primary
- Verification
- Adjusted: the incident is real, and details were corrected against the primary source before publication. How the SEC found the claims is not stated publicly. Earlier summaries said an SEC audit; the release does not say so, which is why this record says surfaced by enforcement rather than naming a mechanism. Verified against the primary source on August 12, 2026. Published on this site August 13, 2026, updated September 1, 2026.
This record is one of 26 in The receipts, each checked against a primary source before it is published. How the list is built →