The Securities and Exchange Commission (SEC) is increasing its scrutiny on artificial intelligence (AI)-related disclosures; therefore, companies must tread carefully as year-end reporting season approaches. Specifically, they have expressed a keen interest in how companies disclose their AI usage, business strategy, and risk. Below is a summary of the SEC’s expectations for disclosures as well as recent enforcement actions that underscore the importance of compliance.

What Do Effective AI Disclosures Look Like?