New Delhi: In yet another step to safeguard investors, Securities and Exchange Board of India (Sebi) has proposed that registered investment advisors and research analysts using artificial intelligence (AI) tools must inform the clients about the usage.
The market regulator is taking these steps to emphasise the importance of strong security measures to avoid unintended data exposure.
Sebi’s order will help the clients to get a full knowledge of the AI tools which are contributing to their investment decisions and to make informed choices about their advisory services.
“The possibility of unintended data exposure highlights the need for strong security measures and clear disclosure to clients about the extent of AI tool usage”, Trivesh D, COO at Tradejini, a stock trading platform, told PTI.
Earlier this month, the market regulator highlighted the growing usage of AI tools in Investment Adviser (IA) and Research Analyst (RA) services. Several AI tools are currently available in chatbot form such as OpenAI’s ChatGPT, Google’s Gemini, etc which allow people to have human-like conversations and receive human-like responses with the chatbot.
The AI tools help in summarising and analysing data that may help in improving efficiency and productivity.
Investment Advisors and Research Analysts should disclose Artificial Intelligence tool usage to clients, Sebi hsa said. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
