SEC’s AI rule requirements to be costly exercise (IGNITES)

The price tag for the industry to meet the requirements of the SEC’s proposed artificial intelligence rule is projected by one member organization to be as high as $30 billion over the first 10 years of compliance. The SEC’s estimate, on the other hand, is much lower at $10 billion over the same period. Amy Lynch, FrontLine’s Founder and President, comments that the ultimate cost number will be both big and meaningful due to the reach and complexity of the rule. She explains that the sizable cost reflects how the AI rule will impact almost every type of firm across the industry, as the expanded use of machine learning and predictive analytics is readily integrated into the sales process. While the rule, proposed last year, requires firms to identify and then resolve conflicts of interest arising from their use of predictive data analytics, many in the industry are critical of how it will disrupt firm operations and customer interactions. SeeĀ IGNITES (subscription required), “SEC’s AI Rule May Be the Priciest Rule Ever: ICI Chief”