QUESTION: According to a recent Securities and Exchange Commission (“SEC”) release, two financial services firms, Delphia (USA) Inc. and Global Predictions Inc., were fined for making false and misleading statements about their purported use of artificial intelligence (AI) and how it was used in the investment recommendation process. The firms agreed to settle the SEC’s charges and pay $400,000 in total civil penalties.
SEC Chair Gary Gensler said, “We find that Delphia and Global Predictions marketed to their clients and prospective clients that they were using AI in certain ways when, in fact, they were not. We’ve seen time and again that when new technologies come along, they can create buzz from investors as well as false claims by those purporting to use those new technologies. Investment advisers should not mislead the public by saying they are using an AI model when they are not. Such AI washing hurts investors.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement further said, “As more and more investors consider using AI tools in making their investment decisions or deciding to invest in companies claiming to harness its transformational power, we are committed to protecting them against those engaged in ‘AI washing.’ As today’s enforcement actions make clear to the investment industry – if you claim to use AI in your investment processes, you need to ensure that your representations are not false or misleading.”
From the perspective of Halacha (Jewish law) is lying where there is monetary gain considered lying or is it actually considered theft? Please cite sources.
ANSWER: Due to the nature of your inquiry and its references to AI, it may be interesting to use Gemini AI (“Gemini”) to give you an answer (with the author factchecking the responses).
We directed Gemini to www.everydayemes.org and the Emes Parsha Sheets that have been posted there to search for an answer to your question. Gemini retrieved the following: Lying where there is monetary gain is considered a form of stealing in Halacha. This is because lying to gain money deprives someone else of their rightful property, which is a violation of the prohibition against stealing.
Gemini found several sources related to this claim:
- The Torah: The Torah explicitly prohibits stealing in the Ten Commandments (Exodus 20:15). [Author Factcheck – Gemini is mistaken, see Rashi that says that the, “Do Not Steal” in the Ten Commandments does not refer to monetary theft, but rather refers to a prohibition against kidnapping.]
- The Talmud: The Talmud discusses various cases of lying for financial gain and concludes that it is a form of theft. For example, in Bava Metzia 61b, the Talmud states that one who sells an item at an inflated price and justifies the high price by lying about its superior quality is considered a thief.
- Later Halachic authorities: Many later Halachic authorities, such as the Shulchan Aruch (Choshen Mishpat 228:6), reiterate the prohibition against lying for monetary gain.
In addition to these sources, Gemini also retrieved from the posted Emes Parsha Sheets that lying for monetary gain can also be a violation of other Halachic prohibitions, such as the prohibition against causing emotional harm to others (known as "Ona'ah"). This is because lying to someone to take their money can cause not only financial harm, but emotional pain as well.
Overall, Gemini concluded that lying for monetary gain is a serious offense in Halacha and should be avoided at all costs.
