This article reviews a public US Securities and Exchange Commission administrative proceeding. It is not legal or investment advice. In its 14 January 2025 order, Release No. 33-11352, the SEC addressed Presto Automation’s statements about its voice ordering product.
What was at issue?
The order describes misleading statements concerning third party technology, automation claims, and the extent of human assistance. The issue was how capabilities were presented to investors, even though the product did use AI technology.
The company agreed to a cease and desist order without admitting or denying the findings. The SEC did not impose a civil penalty, taking account of cooperation and remedial actions described in the order.
Why metric definitions matter
An automation rate needs a definition: what is counted, over which period, and when a transaction counts as human assisted. Engineering, sales, and reporting teams should use the same definition. This is our practical inference from the proceeding.
Controls to put in place
Maintain a shared glossary for product metrics and retain the query or calculation behind each one. Record the model version, period, and population being measured. Describe human review and correction accurately, and map supplier dependencies against customer and investor claims.
Before a public offering
Customers, insurers, and acquirers may ask what is automated, where people intervene, and which suppliers support the product. A consistent answer helps during diligence even in a private company. Refer to the original order for the precise terms of the proceeding.