As compliance headaches continue to arise over the use of third-party communications software, JPMorgan joined other companies in banning the use of third-party AI technology.
These reactions are likely in response to the ongoing industry investigations by the SEC related to widespread recordkeeping troubles and use of third-party software.
- AI technology is growing at an exponential rate, with many programs having significant language sophistication.
- One tool, ChatGPT, was banned from use by employees of multiple companies due to concerns with compliance.
- ChatGPT can provide in-depth, automated responses and problem-solving abilities when prompted by normal text requests.
- The negative to this seen throughout the industry is the boosted and continued concern of producing factual errors or troubling responses.
- Compliance issues may arise from privacy and cybersecurity concerns to regulatory accuracy of information obtained.
Vigilant’s Final Conclusion
Many Firms are looking to enhance their ability to monitor their employees’ use of third-party software. This activity is generally wise, as taking a proactive approach to compliance can help reduce a firm’s regulatory burden.
The SEC continues to put more responsibility on Firms to supervise and vet the third-party applications used by employees. Vigilant suggests that Firms continually review their written policies and procedures to be sure they reflect advances in technology.
Vigilant brings both experienced compliance specialists and deep industry insight to the table, offering multiple levels of compliance solutions. Reach out to us today if you have any questions.