Securities lawyers warn AI companies face fraud lawsuits over exaggerated claims—regulators preparing crackdown modeled on dot-com and ESG enforcement

A top securities litigation partner at Baker McKenzie is publicly warning that AI vendors making inflated performance claims will face the same legal and regulatory scrutiny that trapped dot-com companies and ESG-focused funds in fraud cases. The pattern: companies make bold public promises about their technology's capabilities, regulators investigate, and investors sue when reality underperforms.