On October 28, FINRA detailed how it has used AI and GenAI technologies to help it oversee the securities markets. FINRA reported the rollout of new GenAI-enabled tools, such as an internal large language model chat system and automated solutions for reviewing feedback on rule proposals, which FINRA estimated would lead to thousands of hours in efficiency gains annually.
FINRA also highlighted its engagement with member firms regarding GenAI adoption, noting that its rules remained technology neutral and continued to apply as firms explore new AI applications. The agency provided guidance on supervisory and compliance considerations and maintained regular outreach to committees. FINRA also warned member firms about adversarial uses of GenAI by bad actors, like scams and frauds, and announced plans for further educational initiatives.
The agency stated it would continue to hear feedback from member firms, sharing insights from its own experience and oversight to promote investor protection in the capital markets.
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