AI in Capital Markets: Policy Issues
AI Has the Potential to Transform Operations and Regulations
This article lays out some background and policy implications relevant to congressional oversight and legislative activities. AI Definition in Capital Markets The term AI has been defined in federal laws such as the National Artificial Intelligence Initiative Act of 2020 as “a machine-based system that can … make predictions, recommendations or decisions influencing real or virtual environments.” The U.S. capital markets regulator, the Securities and Exchange Commission (SEC), referred to AI as a type of predictive data analytics-like technology, describing it as “the capability of a machine to imitate intelligent human behavior.” AI Use in Capital Markets The scope and…
