Overview
Recent incidents have shown how generative AI can be used to create convincing “short attacks” by spreading deceptive information that can seriously damage a company’s stock price and reputation. The ability of AI to generate realistic but fake short attacks can rapidly influence the market, causing sharp declines in stock prices, regulatory scrutiny, and reputational damage. This article provides a roadmap for understanding and responding to market manipulation schemes in the era of AI.
Publicly traded companies, legal and compliance teams, and investors should develop a comprehensive response plan that includes monitoring for AI-generated content, enhancing cybersecurity measures, and engaging with regulators and industry groups to stay informed about emerging threats and best practices.
