Published on Aug 23rd, 2023 |

AI and Messaging Compliance | Michael Hogan Insights

Vigilant Insights

Brief Introduction

With the recent SEC charges of $289 million related to electronic recordkeeping failures, which increases the total fines ordered to over $1.5 billion for this frequent compliance failure, Firms are scrambling to find ways to limit their employees’ use of off-channel communications.

This has become increasingly difficult considering that staff attempting to circumvent company policies will normally take steps to avoid detection.

A recent article from “The Information”  highlighted Vigilant Director, Michael Hogan’s comments on the topic.

Michael Hogan Insights on AI and Employee Monitoring

Michael Hogan Insights on AI and Employee Monitoring

There are many vendors that provide services allowing Firms to maintain compliance with recordkeeping practices. Enforcing the policies can be difficult for employers.

In the article, Michael Hogan explains that AI and other tracing software is being considered by employers to be placed on employee personal devices. However, he also mentions that enforcing such measures on employee personal devices could be legally questionable due to privacy concerns.

Vigilant's Conclusion

Vigilant’s Conclusion

The use of Artificial Intelligence is a hot topic in the industry currently, especially when it comes to the monitoring of employee’s personal communications. Some solutions may solve problems while creating new compliance challenges.

It is vital for Firms to partner with compliance professionals that have industry insight and years of experience working with regulators to navigate such difficult topics facing the industry.

Please reach out today for any Compliance Support you may need.

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