ANALYSIS: SEC’s Data Tagging Will Ensnare Companies Next Year

In 2024, the SEC will use investigative tools powered with artificial intelligence to better identify companies that violated disclosure requirements. Similar to speed cameras enhancing traffic control for police, this data tagging technology—known as Inline XBRL—will allow the Securities and Exchange Commission to more effectively analyze large quantities of corporate disclosures in support of the agency’s enforcement activities.

As we approach 2024, the extensive list of corporate filings that are now required to be filed in the Inline XBRL format will continue to grow. As a result of the avalanche of SEC rulemaking, many public companies likely overlooked, ...