Investment Executive on Nostr: Firms' AI adoption poses compliance challenges: FINRA ========== The U.S. Financial ...
Firms' AI adoption poses compliance challenges: FINRA
==========
The U.S. Financial Industry Regulatory Authority (FINRA) has issued a notice reminding brokerage firms of their compliance obligations when deploying generative artificial intelligence (gen AI) and large language models. While these technologies have the potential to enhance firms' products and services and improve operational efficiency, FINRA highlights concerns about accuracy, privacy, bias, intellectual property, and possible exploitation. Firms are advised to evaluate gen AI tools before deploying them and ensure compliance with existing FINRA rules. The notice emphasizes that FINRA's rules and guidance apply to the use of AI and other technologies, whether proprietary or third-party. FINRA may issue further guidance on how specific rules apply to AI use cases.
#Ai #Compliance #Finra #FinancialIndustry #Regulation
https://www.investmentexecutive.com/news/from-the-regulators/firms-ai-adoption-poses-compliance-challenges-finra/
==========
The U.S. Financial Industry Regulatory Authority (FINRA) has issued a notice reminding brokerage firms of their compliance obligations when deploying generative artificial intelligence (gen AI) and large language models. While these technologies have the potential to enhance firms' products and services and improve operational efficiency, FINRA highlights concerns about accuracy, privacy, bias, intellectual property, and possible exploitation. Firms are advised to evaluate gen AI tools before deploying them and ensure compliance with existing FINRA rules. The notice emphasizes that FINRA's rules and guidance apply to the use of AI and other technologies, whether proprietary or third-party. FINRA may issue further guidance on how specific rules apply to AI use cases.
#Ai #Compliance #Finra #FinancialIndustry #Regulation
https://www.investmentexecutive.com/news/from-the-regulators/firms-ai-adoption-poses-compliance-challenges-finra/