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Investment Adviser Machine Learning Financial Services Industry

Porter Hedges LLP

SEC Shifts Focus to “Rooting Out” AI Abuse

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The Securities and Exchange Commission (SEC) has recently focused on “rooting out” the misuse of artificial intelligence (AI) by publicly traded companies and brokerage firms. On February 20, 2025, the SEC established the...more

Lowenstein Sandler LLP

Alternative Data Poised for More Growth in the Age of AI: The 2024 Lowenstein Sandler Alternative Data Report

Over the last six years, investment management professionals have steadily increased their use of alternative data to improve decision-making, optimize portfolios, improve due diligence, and boost returns. Now, with widely...more

Carlton Fields

2 Across: Changing Financial Product Recommendations

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Artificial intelligence (AI) can and is already changing how firms and registered representatives recommend financial products to customers. AI has the potential to enhance recommendations that registered representatives...more

Skadden, Arps, Slate, Meagher & Flom LLP

How and When SEC Recordkeeping Rules May Apply to AI-Generated Content

AI has revolutionized the way many businesses operate. Firms in the financial sector are eager to take advantage of rapidly developing technologies but do not want to risk running afoul of relevant Securities and Exchange...more

Carlton Fields

Cinch Up! AI Enforcement Starts With Washing Charges

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In March 2024, the SEC announced that it settled two cases against investment advisers Delphia (USA) Inc. and Global Predictions Inc. for making false and misleading statements about their purported use of artificial...more

Bilzin Sumberg

SEC Issues First AI-Related Civil Penalties and Warns Against “AI Washing”

Bilzin Sumberg on

​​​​​​​The Securities and Exchange Commission on Monday, March 18, 2024, entered into settlements with Delphia (USA) and Global Predictions, which agreed to pay civil penalties totaling $225,000 and $175,000, for “AI...more

Stark & Stark

SEC Settles Charges Against Investment Advisers for Misleading AI Claims

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On March 18, 2024, the Securities and Exchange Commission announced settled charges against two SEC registered investment advisers for making false and misleading statements about their purported use of artificial...more

BakerHostetler

SEC’s Scrutiny of AI Expands to Marketing Disclosures and Adviser Exams

BakerHostetler on

Chair Gensler Continues to Be Outspoken About the Risks of AI Technologies - Chair Gensler’s warnings of the potential risks associated with the use of AI technologies in the securities industry recently continued with...more

Carlton Fields

SEC Proposal Balances AI-Like Technology Use With Investor Best Interests: Has the Regulator Picked a Winner?

Carlton Fields on

Like other savvy businesses, investment advisers and broker-dealers have increasingly embraced the use of predictive data analytics, artificial intelligence, and similar technologies (AI-like technologies) to help generate...more

Dorsey & Whitney LLP

SEC Proposes Rules to Address Conflicts of Interests Associated with the Use of Predictive Data Analytics

Dorsey & Whitney LLP on

The Securities and Exchange Commission (the “SEC”) proposed new rules under the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940 to address the risks to investors from conflicts of interest associated...more

Skadden, Arps, Slate, Meagher & Flom LLP

SEC Proposes New Conflicts of Interest Rule for Use of AI by Broker-Dealers and Investment Advisers

The passage of omnibus federal legislation on the use of artificial intelligence (AI) is unlikely in the short term, but individual federal agencies continue to address the implementation of AI within the areas they regulate....more

Ballard Spahr LLP

SEC Proposes Additional Conflict-of-Interest Rule for Investment Advisers' and Broker-Dealers' Use of AI in Customer Interactions

Ballard Spahr LLP on

Summary - The U.S. Securities Exchange Commission (SEC) has proposed additional compliance obligations on broker-dealers and investment advisers and their use of artificial intelligence (AI), predictive analytics, and...more

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