SEC warns firms to get their AI house in order
STP’s Lori Weston, Director of Product and Strategy was mentioned in FinancialPlanning’s SEC warns firms to get their AI house in order.
The SEC might have stepped back from a new proposal meant to make advisors responsible for eliminating conflicts of interest in AI-generated investing recommendations. But artificial intelligence, machine learning, and similar technologies remain top concerns for the industry watchdog, as evidenced by a report on examination priorities released Monday.
Lori says the concerns extend to third-party firms who might use AI to provide outsourced services to advisory firms. This is particularly true for vendors who provide help with investment selection and management.
“Advisors should review their overall policies regarding the supervision and oversight of all third-party providers, with a particular focus on the third-party provider’s use of AI,” Weston said. “In today’s interconnected environment, AI risks can infiltrate a firm’s operations via third-party vendors.”
Read more about this article and what Lori shares here.
