Artificial Intelligence: SEC Broker and Investment Advisor Concerns

This new Client Update deals with the SEC's concerns over the use of AI in the broker-dealer and investment advisor conflicts context, something that is not within the scope of practice for many of us. But it's a topic that bears watching as the importance of AI in everything we do grows. Here's the intro from the Client Update:

"The SEC indicated this summer that it plans to introduce proposals to regulate conflicts of interest associated with artificial intelligence (AI) later this year as part of its semiannual rule-writing agenda. The SEC is considering proposed rules related to the following:

• Broker-dealer conflicts in the use of predictive data analytics, AI, machine learning, and similar technologies in connection with certain investor interactions.
• Investment adviser conflicts in the use of predictive data analytics, AI, machine learning, and similar technologies in connection with certain investor interactions."