Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

Series 11, Episode 8: Culture and conduct risk arising from artificial intelligence

Jul 4, 2024

Lindsey Rogerson and Rachel Wolcott, both senior editors at Thomson Reuters Regulatory Intelligence, dive into the world of AI and its implications for culture and conduct risk. They explore how AI can enhance compliance while warning about the potential dangers of employee surveillance and inherent biases. The conversation touches on the SEC's growing concerns over AI-washing and emphasizes the necessity of ethical AI adoption, particularly in managing sensitive data and ensuring workplace transparency.

Ask episode

Chapters

Transcript

Episode notes

Intro

00:00 • 2min

Implications of AI in Regulatory Technology and Employee Surveillance Concerns

02:05 • 5min

Navigating Bias and Hype in AI Monitoring Systems

07:23 • 4min

The Flaws of AI in Monitoring Workplace Productivity

11:47 • 4min

Risks and Ethics of AI Implementation

15:18 • 24min

Navigating AI's Regulatory and Ethical Challenges

39:02 • 4min

In this episode, Helen Chan, regulatory intelligence expert in Hong Kong is joined by Lindsey Rogerson and Rachel Wolcott, senior editors in the UK, to examine use cases for artificial intelligence (AI) powered regtech in culture and conduct risk management. They discuss the potential pitfalls of employee surveillance, endowment bias and instances where AI goes awry. Lindsey and Rachel highlight emerging enforcement risk from the United States' Securities and Exchange Commission (SEC) over AI-washing and the importance of tracking data lineage in the incorporation of generative AI tools for financial institutions.

Links:

The European Insurance and Occupational Pensions Authority - Report on the digitalisation of the European insurance sector: www.eiopa.europa.eu/publications/eiopas-report-digitalisation-european-insurance-sector_en

Regulators in Asia lay down foundation for regulation of AI ethics (paywall): http://go-ri.tr.com/aWnKkV

Conduct tech may fail to deliver insights, while increasing data privacy risk, ethical issues: http://go-ri.tr.com/PN8Rvm

SEC Charges Two Investment Advisers with Making False and Misleading Statements About Their Use of Artificial Intelligence: www.sec.gov/newsroom/press-releases/2024-36

SEC Charges Founder of AI Hiring Startup Joonko with Fraud: www.sec.gov/newsroom/press-releases/2024-70#:~:text=The%20Securities%20and%20Exchange%20Commission,Joonko's%20customers%2C%20the%20number%20of

Finos' AI Readiness: www.finos.org/press/finos-launches-ai-readiness

Contact us:
Helen.Chan@thomsonreuters.com; Lindsey.Rogerson@thomsonreuters.com; Rachel.Wolcott@thomsonreuters.com

For more information about Regulatory Intelligence please search for Thomson Reuters Regulatory Intelligence or click here: legal.thomsonreuters.com/en/products/regulatory-intelligence

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.