Goldman Banker Snared by AI as U.S. Government Embraces New Tech

The Securities and Exchange Commission used a proprietary algorithm to spot suspicious trading that will soon send a former Goldman Sachs Group Inc. banker to prison.

That case is only one example of the rapid adoption of artificial intelligence across the U.S. government. About half of the top 100 regulatory agencies are now using one or more types of AI to carry out their daily work, according to researchers from Stanford and New York universities who are cataloging its use and expect to publish their findings later this year.

For now, “in very few instances have we observed algorithms truly ...