Financial firms are rapidly adopting AI note-taker tools because they are convenient and efficient. However, these tools capture sensitive discussions and potentially material non-public information (MNPI) before compliance has reviewed it, which introduces significant regulatory and operational risks.
To protect your firm, you need to understand the most pressing issues these tools create.
- Unvetted sensitive information: AI note-taker tools can capture MNPI before compliance has a chance to review it, creating the potential for regulatory violations if sensitive information is inadvertently shared or acted upon.
- Regulatory scrutiny and audit complexity: Unreviewed AI-generated content can create significant challenges during the SEC’s, FINRA’s, or other regulatory bodies’ inquiries, making it harder to demonstrate oversight and increasing the firm’s exposure to penalties.
- Misinterpretation or loss of context: AI-generated notes may misrepresent discussions, omit nuances, or take statements out of context if the full transcript is not preserved, heightening regulatory and operational risk.
- Difficulty integrating AI notes safely into research workflows: Researchers require access to AI-generated content, but without proper filtering and oversight, providing this access can create tension between operational efficiency and compliance obligations.
- Increased compliance workload: The sheer volume of AI-generated content can overwhelm compliance teams, increasing the likelihood that critical issues are overlooked.
- Data leakage and client confidentiality risks: AI notetaker tools may store or transmit sensitive client information without proper safeguards. A breach or inadvertent disclosure could damage client trust and trigger regulatory action.
- Inconsistent compliance oversight: Without standardized review processes, different teams may apply inconsistent standards to AI-generated content, increasing legal and operational risk across the firm.
- Unvetted sensitive information: AI note-taker tools can capture MNPI before compliance has a chance to review it, creating the potential for regulatory violations if sensitive information is inadvertently shared or acted upon.
How ACA Can Help
Managing AI-generated content doesn’t have to put your firm at risk. ACA’s Research Compliance Solutions, powered by Encore AI, give you the tools and expertise to:
- Control sensitive information like MNPI exposure with safeguards that prevent sensitive information from slipping through.
- Maintain oversight by standardizing review processes and demonstrating compliance during audits.
- Enable safe AI adoption by integrating notetakers into research workflows without compromising regulatory obligations.
With ACA, you can empower your business while protecting your firm from regulatory and operational pitfalls.