How AI helps regulators protect and inform investors
Securities regulators have begun using artificial intelligence (AI) in recent years, mostly for the purposes of predicting risk, determining which entities to examine, and aiding investors and customers. Here we will discuss AI uses by two regulators: the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). The use of AI focuses on recognizing patterns and common associations in the data to help detect fraud and possible misconduct and to help investors and entities understand the rules and be more efficient in their compliance.