SEC Official Urges Advisers to Build AI Governance Now, Not Wait for Rules
Originally published:
The director of the SEC's Investment Management Division has publicly told investment advisers not to wait for regulatory guidance before governing their own use of artificial intelligence. The official warned that formal regulatory guidance could prove too narrow and arrive too late to be practically useful for firms already deploying AI.
Why it matters for finance
Investment and compliance professionals should treat this public statement as a signal to develop internal AI governance frameworks and controls proactively, ahead of any formal SEC rulemaking.
Original source: law360.com