The SEC’s Division of Examinations announced on October 23, 2026, that its fiscal year 2027 reviews will focus on how accurately registered companies describe their artificial intelligence capabilities. The agency is not creating a new disclosure rule and will instead use Regulation S-K and existing materiality frameworks to target “AI-washing,” or exaggerated and misleading claims about artificial intelligence. Examinations will also assess whether companies are prepared for cyber threats enhanced by artificial intelligence. According to the article, approximately 72% to 76% of S&P 500 companies now identify artificial intelligence as a material risk factor, compared with 12% in 2023, while the number of artificial intelligence-related securities lawsuits could double from the 16 cases recorded in 2025. Anthropic’s prospectus reports approximately $417 billion in future computing infrastructure obligations, illustrating the scale of financial commitments associated with the market.
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