An Evolving Landscape: Generative AI and Large Language Models in the Financial Industry

FINRA Unscripted

Generative Artificial Intelligence (AI) and large language models (LLM) are taking the world by storm, presenting numerous opportunities to create business efficiencies. While the new technologies offer many potential benefits to firms, regulators and investors, they also introduce unique risks.

On this episode, we hear from Brad Ahrens, senior vice president of Advanced Analytics, Andrew McElduff, vice president with Member Supervision's Risk Monitoring team and Haime Workie, vice president and head of FINRA's Office of Financial Innovation, who are closely looking at these technologies and following developments in this space to learn how FINRA is looking at and thinking about generative AI when it comes to its own business and what it's looking at and seeing when it comes to firm use of these tools.

Resources mentioned in this episode:

Artificial Intelligence (AI) in the Securities Industry

Artificial Intelligence (AI) and Investment Fraud

Reg Notice 21-19: Obligations Related to Outsourcing to Third-Party Vendors

Rule 3110: Supervision

2024 FINRA Annual Regulatory Oversight Report

2023 Executive Order on Artificial Intelligence for Congress

NIST: Artificial Intelligence

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