We are pleased to share this issue of Fintech in Brief, which discusses that two settlement orders involving claims by investment advisers regarding their use of artificial intelligence (AI), both announced on the same day, underscore the continued focus on advisers’ use of AI by the U.S. Securities and Exchange Commission’s (SEC) examinations and enforcement divisions. The SEC alleged, among other things, that each investment adviser made statements in marketing and regulatory filings about its purported use of AI, but neither could back up its statements when examined. The SEC alleged the advisers violated the antifraud provisions of the Investment Advisers Act of 1940.

Please click here to read the full issue.