The U.S. Securities and Exchange Commission (SEC) plans to enhance its scrutiny of financial firms’ use of artificial intelligence (AI) tools starting next year. In a report, the SEC stated that investment advisers, brokers, and other financial entities must ensure compliance with regulations regarding their use of AI for trading, fraud prevention, and anti-money laundering. This move follows concerns from multiple regulators about potential risks associated with AI, including discrimination and systemic threats. SEC Chair Gary Gensler has cautioned against misleading claims regarding AI capabilities, as seen in recent fines against firms for such practices.
