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Massachusetts regulators launch probe into AI in securities industry

  • 📰 Reuters
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Massachusetts securities regulators have opened an investigation into the ways in which investment firms use artificial intelligence in their interactions with investors, citing concerns about the technology's potential unchecked use.

Others who received letters included Tradier Brokerage, US Tiger Securities, E*Trade, Savvy Advisors and Hearsay Systems, according to a spokesperson for Galvin, a long-serving Democrat and prominent state securities regulator.

The SEC's proposal, which now faces a period of public comment prior to any decision on whether to adopt it, was in part inspired by 2021's "meme stock" frenzy, in which SEC officials say predictive analytics helped drive the "gamification" of retail investors' behavior.

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