Remarks at Program on Corporate Compliance and Enforcement Spring Conference 2024 – Gurbir Grewal

Put another way: any time you have individuals or corporations trying to capitalize and profit on FOMO, or the “fear of missing out,” around a new technology or offering, it should raise red flags for regulators and compliance professionals alike. After all, effective enforcement and governance require anticipating risk areas.

So looking ahead, where do we see potential risk?

Every day, we see revolutionary technological advancements in artificial intelligence, or AI, that promise to transform nearly every aspect of our lives, including our financial decision making.

Every day, we see individuals, corporations, analysts, and others touting these developments.

Every day, we see investors looking to incorporate AI into their investment strategies, or using it to analyze and recommend investments.

Every day, we see companies attempting to not only develop AI capabilities, or harness it to improve their productivity and growth, but also to attract and retain investors.

And in the end, every day, we see investors making larger and larger investments in these issuers or financial products.

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While perhaps not quite yet a perfect storm, there’s certainly one brewing around AI. And it is incumbent on each of us to make sure it does not come to pass and that investors are not harmed by noncompliance with the securities laws when it comes to this new technology.

Source: Remarks at Program on Corporate Compliance and Enforcement Spring Conference 2024 – Gurbir Grewal