Opportunity or Burden: Understanding the SEC’s Proposed Rules regulating AI & other new technologies by broker-dealers & investment advisers

The Securities and Exchange Commission (“SEC”) recently proposed new rules (“Proposed Rules”) under the Securities and Exchange Act of 1934 (“Exchange Act”) and the Investment Advisers Act of 1940 (“Advisers Act’) designed to address the potential for artificial intelligence (“AI”) and other predictive data analytics (“PDA”) tools to create conflicts of interest between broker-dealers and investment advisers, on the one hand, and their clients, on the other.