Financial Services
The SEC Hasn't Caught Up to AI Summaries
Reg FD, written in 2000, governs selective disclosure to humans. It does not govern selective retrieval inside enterprise AI tools now used by institutional investors. This regulatory gap is large and widening, and the first enforcement action or shareholder lawsuit will define how the SEC treats the AI Disclosure Layer. This article explores what Reg FD covers and doesn't, three scenarios not covered by the current framework, potential sources of enforcement actions, and why the SEC is behind.
