The U.S. Securities and Exchange Commission (SEC) has created a new position on AI and examinations for broker-dealers and investment advisers.
The move should signal to regulated entities that the SEC may begin applying more sophisticated AI tools to scour advertisements made by firms for false or misleading claims that violate the SEC’s Marketing Rule. The SEC may also be reviving an enforcement trend on public companies regarding AI washing, which is when organizations exaggerate their use of AI tools.
