In Regulatory Wrap for the week to April 4, 2025:
In this week’s Regulatory Wrap, we reflect on remarks from U.S. regulators and industry responses gathered in our recent report, which indicate an upcoming increase in the pace of AI innovation.
Regulatory Wrap episode 57: AI in surveillance- is 2025 the turning point?
In Regulatory Wrap for the week to April 4, Kathryn Fallah dissects shifting industry views around AI for 2025.
Highlights:
1. Our State of AI in Surveillance 2025 report findings illustrate an 81% increase in the number of firms open to adopting generative AI models in surveillance systems
2. Acting Chairman Mark Uyeda stated that recent developments around AI have led to an “expanding realm of use cases,” and that the SEC should take a “technology-neutral” stance to AI regulation to avoid causing “unnecessary barriers on the use of new technology”
3. Commissioner Hester Pierce echoed this sentiment by opining that the Commission should not “get lost in artificial fears” and should intervene only when necessary
4. U.S. regulators have taken a caution approach to AI integration in the past, such as by making moves to advance responsible innovation through regulatory guidelines or issuing rules to manage AI in investor interactions
5. Despite shifting approaches, transparency and explainability are still common concerns – report respondents ranked both the importance of explainability and transparent third-party governance as very high
This episode is brought to you by our Content Writer, Kathryn Fallah.
With the SEC planning to take a less prescriptive approach to AI governance, it will be interesting to see if the rapid pace of AI innovation increases. Evidently, AI-enabled tools continue to garner attention across the industry due to their transformative abilities within compliance.
