AI Trends for 2025 - Regulatory Obligations Persist in the Face of Broker-Dealers’ Use of Gen AI

As generative artificial intelligence (Gen AI) tools rapidly evolve in 2025, FINRA member broker-dealers will be presented with both promising opportunities for investors and challenges in satisfying regulatory obligations. Gen AI tools allow broker-dealers to analyze and synthesize vast volumes of financial and market data at a fraction of the time it takes for human analysis (with higher accuracy), to power educational resources that may help investors at all experience levels, and to provide curated market research directly to customers.

In the face of this evolving landscape, FINRA continues to reiterate that its rules and guidance are intended to be technology neutral, and member firms may face challenges in their efforts to comply with their existing regulatory obligations. For example, the content standards of FINRA Rule 2210 (Communications with the Public)—which states that all member communications must be based on principles of fair dealing and good faith, must be fair and balanced, and must not make any false, exaggerated, or misleading statements, among other requirements—will apply regardless of whether the member firms’ communications are generated by a human or AI. Further, data privacy considerations and ensuring the integrity of inputs and outputs will continue to pose challenges.

In 2025, the use of AI tools will continue to implicate virtually every area of a member firm’s regulatory obligations, and member firms should continue to be diligent in the face of a complex regulatory landscape.