The commission accused Global Predictions and Delphia of “AI washing,” making misleading claims about how they each used artificial intelligence in managing investments.
The advocacy group for advisors argued the rule is overly broad. In contrast, the outgoing director of the SEC's Investment Management Division said the degree of risk in AI’s proliferation is “obvious.”
In public comment letters, Morningstar and others urge the SEC to consider revising Reg BI instead of crafting new regulations. However, investor protection advocates say the rule is needed to safeguard consumers.
