SEC Rulemaking: Proposed Rule on Use of Predictive Analytics, AI and Other Technologies

On July 26, 2023, the SEC proposed new rules applicable to registered investment advisers and broker-dealers (available here) intended to address certain conflicts of interest relating to the use of predictive analytics, artificial intelligence, and other covered technologies in interactions with clients.

The rule proposal joins a substantial slate of pending and in-process SEC rules that, if adopted, are expected to significantly increase compliance burdens and costs for registered investment advisers.