What is the SEC's view on AI for investment advisers

The SEC's current view on AI for investment advisers is permissive of back-office use but strict about client-facing claims and conflicts of interest. The Marketing Rule applies to AI-generated marketing exactly like it applies to human-written marketing. The proposed predictive data analytics rule would tighten requirements when AI touches investor interactions. Recent enforcement has focused on 'AI washing' and missing disclosures.

What the SEC has done

• Marketing Rule (2020). Modernized advertising regulation; applies to AI-generated content the same as human content.
• AI washing enforcement (2024). Charged two advisers under the Marketing Rule for false AI claims; $400K combined settlements.
• Proposed predictive data analytics rule (2023, status uncertain). Would require advisers to identify and eliminate conflicts from AI used in investor interactions.
• December 2025 risk alert. Flagged missing disclosures on testimonials/endorsements as a 2026 examination priority; AI-generated marketing is explicitly in scope.

What this means in practice

• Internal back-office AI use is fine if you have a written policy and reasonable controls.
• Client-facing AI (chatbots, automated responses) needs disclosure and human review.
• Any AI claim in marketing needs substantiation — you can't just say 'AI-powered.'
• Books and Records Rule (204-2) requires preserving AI-generated communications.
• Missing an AI use policy is itself a likely finding.

What's coming

• More enforcement on AI washing.
• Tighter rules on predictive analytics in client interactions.
• Continued focus on disclosure, recordkeeping, and conflicts.

This is general information, not legal advice. Talk to your compliance counsel.

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