Investment Management + AI = New Opportunities, Unique Risks

This is the fifth in a series of articles outlining how businesses can successfully capitalize on the adoption and integration of artificial intelligence (AI), while at the same time remaining vigilant regarding AI's unique risks. Even though AI has the potential to upend a broad spectrum of industries, the integration of AI in the finance industry—and specifically the investment management industry—may carry considerations that are among the most important.

The economy, as a whole, fundamentally relies upon the health and reputation of the investment management industry. The significance of maintaining the professional responsibility and integrity of this industry cannot be overstated, particularly with respect to investment advisers and broker-dealers. It is therefore essential to our economy for investment advisers and broker-dealers to understand the inherent risks, adopt appropriate safeguards, and be cognizant of their underlying duties to clients