Reported by Andrew Welsch

This week, the SEC said it is weighing whether to introduce new rules governing how wealth management firms use artificial intelligence when engaging with clients.

The regulatory agency is scrutinizing potential conflicts of interest in the use of AI, machine learning, and similar technologies. The SEC disclosed this alongside other regulatory updates as part of its Spring agenda. 

Of course, the update does not mean that the SEC will issue a new rule, let alone what form new regulations may take. But it comes as wealth management companies race to determine how AI technologies can be incorporated into their businesses. For instance, JPMorgan Chase is developing an AI service that could pick stocks for clients. In May, the bank applied for a trademark for “IndexGPT,” a reference to OpenAI’s ChatGPT.

Read full report: https://www.barrons.com/amp/advisor/articles/sec-to-weigh-new-artificial-intelligence-rules-for-wealth-management-fb11a1f9