In the ever-evolving landscape of artificial intelligence and intellectual property, Google has recently introduced a new tool called Google Extended which may be helpful to investment advisers desiring to protect their proprietary content on their website. This new tool allows web publishers such as investment adviser firms to have their websites indexed for search engine purposes while opting out of having their data used for training Google’s artificial intelligence (“AI”) models, including Bard. This development has far-reaching implications for various industries, including investment advisers who are increasingly reliant on digital platforms for client acquisition and engagement.
Category Archives: Artificial Intelligence
Privacy Risks and Best Practices for an Investment Adviser Using ChatGPT
September 24, 2023
Introduction
In the age of artificial intelligence and machine learning, the use of large language models like ChatGPT presents both opportunities and compliance challenges for investment adviser firms. This post aims to discuss at least one risk associated with an investment adviser firm’s supervised persons using the consumer version of ChatGPT, specifically focusing on the potential for an investment adviser to share inadvertently non-public personal information (“NPPI”) of clients and several best practices for mitigating this privacy risk.
SEC Proposes Rule for Use of Predictive and Artificial Intelligence Technology by Investment Advisers
August 02, 2023
Regulatory Watch
The U.S. Securities and Exchange Commission (“SEC”) has proposed Rule 211(h)(2)-4 which requires an investment adviser registered with the SEC to address conflicts of interest that arise from the use of covered technologies which optimize, predict, guide, forecasts, or directs investment-related behaviors or outcomes.
