Brian Daly Authors Op-Ed in Bloomberg Law on SEC’s Plan to Regulate AI
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Bloomberg Law has published an op-ed entitled “The SEC’s Plan to Regulate AI on Wall Street Is Already Outdated,” by Akin investment management & private equity partner Brian Daly. The article discusses the SEC’s attempt to regulate the use of AI for investment advisers and broker-dealers through its proposed rule, “Conflicts of Interest Associated with the Use of Predictive Analytics by Broker-Dealers and Investment Advisers.”
Brian identifies potential concerns in the SEC’s proposal, including its broad definition of covered technologies—such as AI tools and Excel spreadsheets—and requirements for investment advisers to inventory all uses of covered technologies and assess which uses potentially give rise to conflicts of interest.
Further, Brian summarizes that the proposal’s most significant concern is that the dramatic rate of change in AI technology has already made the proposal outdated. “Since its publication just a few months ago, we’ve gone from requesting haikus from generative AI chat websites to integrated functions in our everyday applications,” Brian wrote. “Machines now produce initial draft of prose and code on par with junior analysts, and machine-learning algorithms outperform humans at a growing list of tasks.”
To read the full article, click here.
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