AI-enabled companies going public are facing increasing scrutiny over just how AI figures into their business models, Fenwick’s Ran Ben-Tzur told ION Analytics in a recent article.
“They want transparency. The SEC wants issuers to clearly and accurately disclose their use of AI and the associated risks,” ION quoted Ben-Tzur, noting his role helping CoreWeave and Figma navigate these issues to enduring success.
Companies who describe themselves as AI-enabled now face questions from SEC staff about who owns the underlying models and how they’re integrated into products, as well as requests for evidence supporting any claims of superiority, Ben-Tzur told the outlet.
Read the article at ION Analytics and learn more about Fenwick’s capital markets capabilities.