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Nov. 13, 2019

AI for Fund Managers and Beyond: Government Guidance

  • Shaw Horton
    Cybersecurity Law Report
The U.S. government is prioritizing American innovation in AI, and while the SEC and CFTC have said little about the technology, other domestic and international governmental agencies have issued guidance on how firms can responsibly use AI, as well as how they should conduct diligence and contract with AI service providers. This article analyzes governmental efforts to promote AI and foster its responsible use, explores best practices for contracting with third-party AI service providers and discusses how to mitigate the risk of bias. The first article in this series explored how AI can be used, how to determine what functions to automate, obstacles to AI implementation and whether humans are still needed in the process. A subsequent article will look at how companies can automate their legal departments and how to maximize data privacy. See “Understanding the Intersection of Law and Artificial Intelligence” (May 30, 2018).

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