AI for Broker-Dealers and Investment Advisers: Legal and Regulatory Considerations

As broker-dealers and investment advisers increasingly deploy artificial intelligence (AI) applications across their business functions, they must ensure that these technologies operate in compliance with applicable securities laws and regulations. These include customer-facing applications such as chatbots and virtual assistants, trading algorithms and portfolio management tools, and compliance monitoring systems. Read this practice note for insights aimed at broker-dealers, investment advisers, and all who are responsible for privacy and data protection considerations.

Read now »

Related Content

• Cybersecurity Best Practices for Broker-Dealers Checklist
  Put polices in places that can prevent, mitigate, and respond to cybersecurity breaches.

• Investment Advisers: Recordkeeping and Off-Channel Communications Checklist
  Get updates on the Recordkeeping Rule, related settlements, and regulator statements.

• Broker-Dealer Registration
  See who is required to register, under what circumstances, and the registration process.

• Investment Adviser Registration Process
  Learn about state and federal registration, the process for each, and representatives of IAs.

Practical Guidance Updates 
Featuring the latest updates from your Practical Guidance account. 

• What’s New in Practical Guidance
  Discover the newest Practical Guidance content and resources in  this update. This guide is designed to help you find the tools and insights you need to work more efficiently and effectively.
• New! Practical Guidance Journal, 2025 Second Edition features guidance for regulating AI in the workplace in 2025, Intellectual Property issues related to deepfakes, the emergence of AI in mergers and acquisitions, and a checklist to help when evaluating AI technology risks.
• For Practical Guidance content on important recent trends, review easy-to-use Resource Kits on these topics:

• • Chevron Reversal Impact Resource Kit
  • Environmental, Social, and Governance (ESG) Resource Kit
  • Generative Artificial Intelligence (AI) Resource Kit

• Legal Developments provide the latest updates and analyses of emerging topics impacting your practice area. Visit the Legal Developments page to see the latest topics, which also include breaking legal news and related Practical Guidance content.
• Keep an eye on the SEC Proposed and Adopted Rules Tracker for the latest updates from the Securities and Exchange Commission.
• Document alerts allow you to stay current on legal developments that affect your practice. Find out how to set up your document alerts.
• Browse the Practical Guidance Author Center to see the 2600+ leading attorney authors contributing to our 26 practice areas. Interested in becoming a Practical Guidance author? Click here for details. Practical Guidance is committed to amplifying diverse voices of attorneys across all differences, including gender and race.

PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+