CDS Crypto News Massachusetts Securities Regulators Launch an Investigation into the Use of Artificial Intelligence in the Industry
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Massachusetts Securities Regulators Launch an Investigation into the Use of Artificial Intelligence in the Industry

Massachusetts securities regulators are concerned about the use of artificial intelligence.

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Massachusetts Securities Regulators Launch an Investigation into the Use of Artificial Intelligence in the Industry

After growing more concerned about the potential effects of the new technology, Massachusetts’ securities authorities have opened an investigation into the usage of artificial intelligence (AI) in the securities sector.

Massachusetts Securities Regulators Launch an Investigation into the Use of Artificial Intelligence in the Industry

On August 3, Secretary of the Commonwealth William Galvin of Massachusetts formally announced an investigation into how businesses engage with Massachusetts investors when using AI. On August 2, the securities division of the commonwealth addressed letters of inquiry to several registered and unregistered companies that were rumored to be using or developing AI for commercial reasons in the securities industry. Data on how businesses might be utilizing AI in their operations was sought after by the authority.

Companies Have Until August 16

The investigational sweep’s target companies have until August 16, 2023, to answer regulator questions.

Of particular interest to Galvin are the supervisory procedures that firms have in place regarding artificial intelligence, and whether those systems ensure that the AI will not put the interests of the firm ahead of the interests of their clients,

The Regulator

The securities office will also be evaluating the disclosure policies for companies that have already implemented AI.

US Securities Authorities Have a Big Responsibility, Galvin Says

Regarding AI and its potential effects on investor protection, according to Galvin, U.S. securities authorities have a critical role to play.

If deployed without the guardrails necessary to ensure proper disclosure and consideration of conflicts, I am concerned that this technology could result in harm to investors.

Galvin

A few corporations are also being questioned by Massachusetts securities officials regarding any investor-facing marketing materials that might have been produced with the use of artificial intelligence.

Massachusetts Securities Regulators Launch an Investigation into the Use of Artificial Intelligence in the Industry
Sources:cointelegraph
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lectertodd

Lectertodd is 27 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

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