The enforcement head at the Securities and Exchange Commission (SEC) laid out general principles for “proactive compliance” to avoid making false or misleading claims about the capabilities of artificial intelligence (AI) products and services.
In a speech delivered Monday at a compliance conference, Gurbir Grewal, director of the SEC’s Division of Enforcement, predicted a “storm of risk” is brewing around AI use, fueled by intense interest among investors and the market. This interest, he said, could lead to elevated investor risk as firms race to roll out new AI-driven products and services to improve financial decision-making, make better bets on the market, enhance productivity and growth, and attract and retain investors.
