Partner Carolyn Welshhans joined a podcast from Oyster Consulting to build on the insights from Part One of this podcast series and discuss the complex challenges and regulatory risks associated with using AI in the financial services industry, particularly for wealth management firms. The discussion highlighted key issues, such as AI transparency, market manipulation concerns, cybersecurity, and compliance with Securities and Exchange Commission (SEC) rules.
“The SEC has brought several cases in this space, including against investment advisors, where the SEC has alleged what they call ‘AI washing,’ meaning that firms are saying they’re using AI and the SEC is alleging that … they’re using kind of the buzzwords of this very hot topic to draw in clients and investors,” Carolyn said.