Partners Jonno Forman, James Sherer, Teresa Goody Guillén and Michelle Tanney authored an Aug. 16 Westlaw article about rules proposed by the Securities and Exchange Commission (SEC) that seek to address issues arising from the use of artificial intelligence (AI) in the securities industry.
In its AI Rules Proposal, the SEC “specifically identified five potential risks on a micro and macro basis – bias, conflicts of interest, financial fraud, privacy and intellectual property concerns, and the stability of the markets,” the authors write. However, its proposal addresses just one of those five risk areas, so the SEC may plan to propose additional rules.