SEC Urges Companies to Disclose AI Impact in Year-End Filings

SEC officials will be watching closely to see what details US companies provide investors about their ongoing reliance on artificial intelligence or how they are developing the fast-emerging technology.

AI isn’t explicitly mentioned in Securities and Exchange Commission rules, yet could still trigger corporate disclosures throughout the financial report from the description of the business, to its risks, to management’s discussion and analysis, said Sarah Lowe, deputy chief accountant with the SEC’s Division of Corporation Finance.

Companies should consider whether they have a “basis for the claims to ensure that material disclosures are accurate” and don’t “deceive investors,” she ...