IOSCO Issues Final Guidance on AI and Machine Learning

The Board of the International Organization of Securities Commissions (IOSCO) recently released its final report (Final Report) on the use of artificial intelligence (AI) and machine learning by market intermediaries and asset managers. This article discusses the key provisions of the Final Report, the input IOSCO received in response to its consultation and how the final guidance measures differ from those proposed last year, along with analysis from Avi Gesser, partner at Debevoise & Plimpton; and Lex Sokolin, global financial technology co-head of ConsenSys. For further insights from Gesser on the subject, see “The Current State and Future of AI Regulation” (May 14, 2020). For additional commentary from Sokolin, see our three-part series on AI for fund managers: “How to Use It to Streamline Operations” (Sep. 5, 2019); “Government Guidance, Service-Provider Negotiations and Risks of Bias” (Sep. 12, 2019); and “Automating the Legal Department and Maintaining Privacy” (Sep. 19, 2019).

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