U.S. Securities and Exchange Commission voted Wednesday to propose new regulations on online brokerages that would limit how artificial intelligence is used on their customers.
The suggested regulations would make brokerages disclose and remove any conflicts of interest caused by their use of AI.
The SEC likewise proposed that investment firms keep extensive records and enact written policies to prevent potential violations with AI.
The move comes after 2021’s meme-stock trading rush resulted in brokerages like Robinhood making the online trading experience more game-like and encouraging customers to make risky trades through behavioral prompts.
