Wall Street’s Use of AI, Data Analytics Faces New SEC Rules (2)

Wall Street’s main regulator is unveiling proposed restrictions for brokerages and money managers that use artificial intelligence to interact with clients.

The US Securities and Exchange Commission approved a plan on Wednesday to root out what Chair Gary Gensler has said are conflicts of interest that can arise when financial firms adopt the technologies. The agency also adopted final rules requiring companies to disclose serious cybersecurity incidents within four business days after they’re deemed significant.

The AI proposal is the latest salvo from Washington regulators concerned about the technologies’ power to influence everything from credit decisions to financial stability. Companies ...