A joint report by the Ontario Securities Commission and Ernst & Young found Ontario capital markets players are already using artificial intelligence to allocate assets, forecast prices and liquidity, and support sales and marketing, among other uses. (The Logic)

Talking point: The OSC report comes as policymakers, companies and regulators of all kinds grapple with how to harness the opportunities and manage the risks posed by AI, which has captured the public’s imagination ever since the launch of OpenAI’s ChatGPT in November 2022. In July, U.S. Securities and Exchange Commission chair Gary Gensler warned about the risks AI poses to financial stability, saying he had asked the regulator’s staff to recommend rules about the use of AI to make investment recommendations. The OSC report found AI is at an “intermediate stage of adoption” in Ontario capital markets and that barriers—including data quality, privacy and staffing challenges—“will need to be thoughtfully addressed to fully benefit from AI.”