HomeAI TechnologyBreaking: Major AI Update Unveils SEC Data Analytics Proposal, IBM CEO's Insight

Breaking: Major AI Update Unveils SEC Data Analytics Proposal, IBM CEO’s Insight

Are clients more optimistic about AI than their lawyers? That’s what a new survey from legal tech company Clio has found. The survey shows that clients have a more positive outlook on the use of generative AI compared to the lawyers who represent them. This finding is in contrast to a previous survey by Pew Research, which revealed that public anxieties about AI were a major hurdle for companies looking to implement the technology.

Financial industry trade groups are not happy with the SEC’s proposal on “Conflicts of Interest Associated with the Use of Predictive Data Analytics by Broker-Dealers and Investment Advisers.” The proposal aims to prevent firms from putting their interests ahead of investors’ interests when using predictive data analytics and similar technologies. Trade groups argue that the proposal will create unnecessary burdens and hinder innovation.

IBM CEO Arvind Krishna believes that AI companies should be held accountable for the harms caused by their technology. In an interview with Politico, Krishna emphasized that legal liability leads to more accountability and responsibility. He believes that holding companies responsible for the effects of their AI products will ensure safer and more ethical use of the technology.

According to Tanguy Chau, the founder and CEO of Paxton.ai, AI companies designing products for attorneys face three key challenges. They must build trust with their clients, fit into the existing organizational structure of law firms, and deliver clear benefits for both the firm and the attorneys themselves. Overcoming these challenges is crucial for successful integration of AI in the legal industry.

A recent MIT Technology Review survey of over 1,000 executives highlighted the potential challenges and rewards of using generative AI in the corporate world. While there is near-universal recognition of the transformative power of AI, uncertainties and future regulatory concerns remain. Many companies are seeking partnerships with larger tech companies to navigate these challenges. Executives surveyed also expect AI to lead to workforce reductions in the future.

All in all, the use of AI in various industries continues to be a topic of debate and exploration. As AI technology advances, it is important to address concerns and challenges while harnessing its potential. What do you think about the use of AI in the legal industry? Do you believe it holds promise or are you skeptical? Leave your thoughts in the comments below and join the discussion!

Source: Above the Law

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