SEC Eyes Potential Challenges Accompanying AI
Summary
US Securities and Exchange Commission (SEC) Chair Gary Gensler recently outlined his concerns regarding the potential financial consequences of AI in an interview with The New York Times, including concerns that AI models used to study investor behavior may put companies’ interests ahead of investors. Chair Gensler also raised the question of who would bear the responsibility if generative AI provides faulty financial advice. Reports have also surfaced in recent weeks that the agency sent request letters to a number of private funds to inquire about their use of AI, including details about their “models and techniques” and “any incidents where AI use raised any regulatory, ethical, or legal issues.”
Impacted Sectors
Additional Information
© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.