Preparing for AI Whistleblowers – Debevoise Data Blog

AI enforcement and whistleblower protection are priority areas for both the SEC and the DOJ. The longstanding whistleblower program at the SEC has yielded dozens of significant enforcement actions. The SEC has repeatedly warned market participants against “AI washing” and has charged its first-ever AI fraud cases. The U.S. Department of Justice (“DOJ”) similarly launched its AI enforcement program in February by announcing an initiative targeting the detection and prosecution of crimes perpetrated through AI. In March, the DOJ announced a new pilot whistleblower rewards program that reaffirmed its focus on AI, stating that prosecutors would integrate AI assessments into evaluations of corporate compliance programs and would seek “stiffer sentences” for AI misuse.

Given robust federal whistleblower incentive programs and rapidly emerging recent AI enforcement activity, companies adopting AI should consider updating their policies and procedures to prepare for AI whistleblower risks.

Source: Preparing for AI Whistleblowers – Debevoise Data Blog