Investor lawsuits over AI-related claims are expected to rise as rapid AI advancements, like DeepSeek’s chatbot, trigger stock fluctuations and scrutiny over AI-washing. Haynes Boone Partner Charlene Liu spoke with Bloomberg Law about the lack of understanding as AI technology use increases and regulations lag behind.
Read an excerpt below:
Misunderstandings will happen either way, particularly with new technology that companies and investors are figuring out how to discuss, said Charlene Liu, a partner at Haynes Boone who has a PhD in electrical engineering.
“When such cases come up at the district court or from the SEC, I see some of the cases are basically dismissed,” Liu said. “Because I guess it’s really very hard to delineate: Was that an overstatement? Was that a lack of information, or is it a somewhat innocent disconnect between engineers and businesspeople?”
