Year: 2024
Type: preprint
Abstract: This paper explores the intersection of ChatGPT, a state-of-the-art language model developed by OpenAI, and the SEC (Securities and Exchange Commission) Rule, with a focus on future-proofing chat conversations and ensuring compliance in financial and securities industries. ChatGPT is an advanced AI model that can generate human-like responses in real-time conversations, making it a valuable tool for customer service, support, and information retrieval. However, its use in regulated industries like finance necessitates careful consideration of compliance requirements. The SEC Rule, enforced by the Securities and Exchange Commission in the United States, sets standards for recordkeeping and retention of communications related to securities transactions and client interactions. The rule aims to promote investor protection, market transparency, and regulatory oversight. This paper examines the challenges and considerations in utilizing ChatGPT within the framework of SEC regulations. It discusses the potential risks associated with unmonitored and unrecorded chat conversations, including the potential for unauthorized advice, dissemination of false or misleading information, or failure to meet compliance obligations.
Source: OSF Preprints (OSF Preprints)
Author: Akbar Lakhani
Language: English
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W4391450192