US investment advisors face SEC examinations that treat artificial intelligence as a top focus this year, even though no rule written specifically for AI exists after the regulator dropped its proposal. Compliance consultants recommend written rules on human review of AI output, tighter terms for outside service providers, accurate marketing claims and a named owner for AI use. A survey of compliance officers found fewer than half of firms require a person to check AI results, and it remains unsettled whether AI-generated client meeting notes count as official records.
What changed
A proposed SEC rule on AI conflicts of interest was withdrawn last summer, leaving no AI-specific rule for advisors.
What it unlocks
Preparing for SEC exams by documenting human review, vendor AI terms, marketing claims and named ownership of AI use.
- 48% require a human check on AI output
- 411 advisor firms surveyed
- under a third cover third-party AI use
- 30 days to notify breached clients
What you need to act on it
- a US-registered investment advisor subject to SEC examination
Sources