SEC should avoid 'overly prescriptive' AI rules, acting chair says

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SEC should avoid 'overly prescriptive' AI rules, acting chair says

Acting SEC Chairman Mark Uyeda emphasized the need for a flexible approach to AI regulation, cautioning against overly prescriptive rules that could stifle innovation. He expressed concerns about recent commission efforts that may create unnecessary barriers to the adoption of new technologies. Uyeda's remarks reflect a broader shift in U.S. AI policy under the Trump administration, moving away from the previous administration's directives.

Uyeda's call for effective and cost-efficient regulations aims to balance innovation with investor protection. He highlighted the importance of adapting regulatory frameworks to keep pace with technological advancements, particularly in AI. This approach seeks to ensure that regulations do not hinder the growth and potential of AI technologies in the financial sector.

• Uyeda advocates for flexible AI regulations to foster innovation.

• Trump's administration shifts U.S. AI policy away from Biden-era directives.

Key AI Terms Mentioned in this Article

Artificial Intelligence (AI)

AI refers to the simulation of human intelligence in machines, which is crucial for modern technology applications.

Regulation

Regulation involves rules set by authorities to govern the use of technologies like AI, impacting innovation.

Predictive Data Analytics

Predictive data analytics uses AI to analyze data and predict future outcomes, relevant for financial decision-making.

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