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Shoeleather Journalism in the Digital Age

Shoeleather Journalism
in the Digital Age

Companies need guardrails, especially if using artificial Intelligence, SEC chair says

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler testifies before a House Financial Services Committee oversight hearing on Capitol Hill in Washington, U.S. Sept. 27, 2023. (REUTERS/Jonathan Ernst)
Staff Reports | REUTERS

Companies need to ensure they are disclosing accurate information, especially if they are using artificial intelligence, the head of the U.S. Securities and Exchange Commission said on Wednesday after Lyft was forced to correct a major forecast error.

SEC chair Gary Gensler, asked about the incident, told CNBC in an interview that he could not comment on any specific case but that in general companies have a responsibility to ensure they release correct details about themselves and their finances.

“It’s the responsibility of companies to ensure that they put out information in the public that’s accurate,” he said.

Rideshare company Lyft’s forecast error in a press release on Tuesday briefly sent its shares up 67% before the mistake was corrected, with analysts and experts on Wednesday saying the incident could invite scrutiny.

“There’s still a responsibility to ensure that you have accurate information that you’re putting out and, with the use of AI, that you have certain guardrails in place,” Gensler told CNBC.

Editor’s Note: Reporting by Susan Heavey; Editing by Doina Chiacu and Chizu Nomiyama


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