The Department of Labor (DOL) announced last week Principles for Developers and Employers when using AI in the workplace. These Principles, which are a directive from President Biden’s Oct. 30, 2023, Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, will “create a roadmap for developers and employers on how to harness AI technologies for their businesses while ensuring workers benefit from new opportunities created by AI and are protected from its potential harms.”
The SEC adopted amendments to Regulation S-P requiring broker-dealers, investment companies, registered investment advisors, and transfer agents to implement and maintain policies and procedures regarding an incident response program that are designed to detect, respond, and recover from unwarranted access or use of client information.
In March, the U.S. Department of Treasury has released its newest report, Managing Artificial Intelligence- Specific Cybersecurity Risks in the Financial Services Sector. The report, which was mandated by Executive Order 14110, Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence, outlines the current state of AI as it relates to the financial industry, as well as best practices for managing and utilizing AI, largely in relation to growing fraud and cybersecurity threats associated with AI.
The SEC announced on Monday that it settled charges against two investment advisers, Delphia (USA) Inc. and Global Predictions Inc., for making false and misleading statements about their purported use of artificial intelligence (AI), according to a SEC press release. This is the first time the SEC has fined investment advisers for false and misleading statements about their use of AI.