Wall Street's main regulator is moving to introduce new rules for brokerages using artificial intelligence to interact with clients.
The U.S. Securities and Exchange Commission said Tuesday that a long contemplated plan to rein in conflicts of interest associated with the technology could be introduced as soon as October.
The proposal would also apply to predictive data analytics and machine learning.
Since taking the helm of the agency two years ago, SEC Chair Gary Gensler has repeatedly expressed concerns over whether brokers and financial advisors really make recommendations that are in their clients' best interests.
He's also said certain new technologies when used by financial professionals can present "inherent" conflicts of interest.
"Technology, markets, and business models constantly change. Thus, the nature of the SEC's work must evolve as the markets we oversee evolve," Gensler said in a statement on Tuesday.
The SEC started exploring potential conflicts of interest associated with the technologies back in 2021.
