He speculated that upcoming business infrastructures in the U.S. might heavily rely on a handful of base models. Such a scenario could promote “herding,” where all businesses depend on identical information, thus amplifying the chances of a financial collapse.
He speculated that upcoming business infrastructures in the U.S. might heavily rely on a handful of base models. Such a scenario could promote “herding,” where all businesses depend on identical information, thus amplifying the chances of a financial collapse.
The SEC introduced a potential regulation last month that would necessitate investment consultants to eliminate technology-induced conflicts of interest. This initiative stems from concerns that AI might prioritize the interests of brokers or advisers over those of investors. Gensler, in a prior press statement, stressed that advisers should always prioritize the investor's interests.
In further comments to The New York Times, Gensler mentioned, "The emphasis should always be on the investor, not the adviser or broker." He expanded on the recent proposal, detailing the need to address conflicts potentially inherent in AI models.
Furthermore, Gensler emphasized that even if AI provides erroneous financial guidance, the onus remains on the investment consultants. He stated, "Under existing laws, investment advisers owe their clients a fiduciary duty, including a duty of care and loyalty. This obligation persists, irrespective of whether an algorithm is in use."
TechEchelon Staff bylines are produced collectively by the newsroom for short, breaking, and wire-style coverage. Longer-form reporting is published under the responsible reporter's name.
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Apple's iOS 27 distributes artificial intelligence across eight features built into existing apps, including a bill-splitting tool in Apple Cash, automated password updates, and natural-language Shortcuts — with a public release expected this fall.
Apple's iOS 27 will bring a range of AI-powered features to iPhone this fall, including receipt-based bill splitting in Apple Cash, autonomous password updates, and smart notification grouping in the Home app — all running through Apple Intelligence.
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