2b. ALL – Emerging Compliance Challenges with Use of Artificial Intelligence (Intermediate)

This lab will consider compliance considerations for the use of AI by investment adviser and broker dealers to conduct business and the challenges faced by compliance departments to review AI content.  AI can be generative, analytical, or functional and the implications for each use vary.  This lab will discuss ways to identify, assess, and manage the regulatory and compliance risks stemming from the use of AI.  The session will use case studies, examples, group discussions, and other application activities to:

• Learn how to identify compliance risks associated with use of generative AI. 

• Determine if the use of AI for conducting business is covered by existing compliance policies and procedures.

• Discuss best practices to update compliance policies and procedures for use of AI.

• New ways in how AI can assist with compliance reviews and testing.