A new bill introduced by Senators Ted Cruz and Bill Hagerty aims to block the SEC from finalizing a rule on how financial advisors can use artificial intelligence (AI). The SEC’s rule would require firms to identify and address conflicts of interest that arise from their use of AI tools.
Senators Cruz and Hagerty argue that the SEC’s rule would be too burdensome and expensive for firms to comply with. They also believe it would stifle innovation and prevent firms from adopting new technologies.
Some Democrats have also expressed concerns about the SEC’s rule, but for different reasons. They worry that the rule could be too weak and not do enough to protect investors from potential conflicts of interest.
Overall, the bill is unlikely to pass in the Democratic-controlled Senate. However, it highlights the ongoing debate about how to regulate the use of AI in the financial industry
