The US Securities and Exchange Commission (SEC) plans to increase its examination of financial firms' use of artificial intelligence in the upcoming year due to concerns about the integration of emerging technologies in the financial sector.

Investment advisers, brokers, and clearing agencies should be prepared for increased scrutiny regarding their claims about AI tools. The SEC's Division of Examinations will ensure compliance with agency regulations and investigate how these firms supervise AI applications in trading, fraud prevention, and anti-money-laundering efforts.

As regulators focus on the implications of AI in finance, firms will need to demonstrate strong oversight and adherence to established rules to avoid potential penalties.