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Join the Securities Litigation and Enforcement Group on LinkedInGary Gensler confirms SEC’s use of AI for financial surveillance
United States Securities and Exchange Commission (SEC) Chair Gary Gensler testified on Sept. 12 in a Senate oversight hearing that his agency was currently using artificial intelligence (AI) technologies to monitor the financial sector for signs of fraud and manipulation. *** When asked by Sen. Catherine Cortez Masto how he envisioned the SEC using AI, […]
SEC launches artificial intelligence sweep
In at least two cases, regulators have asked private funds 15 sets of questions about how they’re using AI, including a description of their “models and techniques,” a “list of algorithmic trading signals and associated models,” the source and providers of their data, and internal reports of “any incidents where AI use raised any regulatory, […]
AI hype is gripping corporate America – The Washington Post
America’s public companies are embracing artificial intelligence fever. More than 1,000 companies mentioned the technology in their quarterly reports this summer, up from just 36 a decade ago, according to a Washington Post analysis. Source: AI hype is gripping corporate America – The Washington Post
Law Firms Sound Alarm Over SEC’s Proposed Clampdown on Robo Advisers’ Use of AI | Law.com
Several major law firms have expressed concern that a proposed U.S. Securities and Exchange Commission rule seeking to restrict robo advisers’ use of artificial intelligence is overbroad. The proposed rule aims to address conflicts of interest that occur when broker-dealer and investment advisers use predictive data analytics in investor interactions. Firms have begun using technologies, such as predictive […]
Companies Grapple With Limits in Bringing AI Into the Boardroom
According to the Board Practices Quarterly report, only 13% of companies have an AI policy or code of conduct. Around one-third don’t have the protocol and another one-third are currently considering enacting it. The report also shows that only 9% have revised corporate policies to include privacy, cyber, risk management, and record retention. About one-third […]
Gary Gensler, SEC Chief, Worries About AI – The New York Times
A.I. models may put companies’ interests ahead of investors’. The meme stock frenzy driven by social media and the rise of retail trading on apps highlighted the power of nudges and predictive algorithms. But are companies that use A.I. to study investor behavior or recommend trades prioritizing user interests when they act on that information? […]
SEC Chairman Gary Gensler Discusses the Risks to Finance in AI – Bloomberg
Gary Gensler would like to talk about something other than crypto. After two years of battling an industry that he says is riddled with scams and fraud, the head of the US Securities and Exchange Commission is focused on a different technology that has all of finance buzzing: artificial intelligence. Unlike digital coins and nonfungible […]
SEC Chair Gary Gensler Warns AI Risks Financial Stability – Bloomberg
Gensler, who previously taught classes at the Massachusetts Institute of Technology, has frequently discussed the impact of AI on finance since taking the helm of the SEC in 2021. However, he said Monday that the issues have taken on a new importance with recent advances in the tools, which he called “the most transformative technology […]
SEC to Weigh New Artificial-Intelligence Rules for Brokerages – Bloomberg
Wall Street’s main regulator is moving to introduce new rules for brokerages using artificial intelligence to interact with clients. The US Securities and Exchange Commission said Tuesday that a long contemplated plan to rein in conflicts of interest associated with the technology could be introduced as soon as October. The proposal would also apply to […]
Hedge Funds Are Deploying ChatGPT to Handle All the Grunt Work – Bloomberg
The latest artificial-intelligence hype is powering a massive surge in the stock market on bets that a new era of innovation is nigh. Yet for money managers who weaponize computing advances for an investing edge, the era of ChatGPT holds a less lofty promise for now: Automating the grunt work. So-called generative AI is already […]