The breakneck pace at which companies across industries have released generative artificial intelligence-powered offerings in the last year is raising red flags within several federal agencies, including the Securities and Exchange Commission. The regulator recently coined a new term to define some of the deceptive AI practices it has observed “time and [time] again”: AI washing.

The latest successor to greenwashingwhich calls out some companies’ use of green marketing materials to convince consumers that their practices are more environmentally friendly than they actually areAI washing refers to businesses making unfounded AI claims to the public.