Investment Advisers Should Stay Apprised Of New AI Risks

Few technologies have captured as much attention — or concern — among senior legal and compliance officers at investment advisers and other firms as artificial intelligence. That focus is well placed. AI is a rapidly evolving, frontier technology, and it seems like every day a new model, feature or use case is announced.

While these developments will undoubtedly bring a variety of benefits to firms, they also present a variety of risks, including that old policies, procedures and processes associated with the firm's use of AI will no longer be fit for purpose.

As the U.S. Securities and Exchange Commission's Division of Examinations recently reiterated in its 2026 examination priorities, AI use can raise a host of regulatory implications for investment advisers.

Fortunately, there are several steps investment advisers can take to stay apace with the evolving technology and regulatory expectations.