The Canadian Securities Administrators have issued guidance for fund managers, exchanges and other financial market players on the use of AI. Alongside this, the regulator is seeking input on how regulation should evolve to address AI’s risks and opportunities in a consultation open until the end of March. (The Logic)

Talking point: Regulators around the world are grappling with how to address potential AI risks without stifling its economic opportunity. The Ontario Securities Commission has made monitoring threats posed by emerging technology—including AI—a priority. According to the CSA’s guidance, market participants should set standards for how AI is overseen and be able to explain its results. AI risk factors might require disclosure. The CSA warns against overstating the use of AI in investment products, a phenomenon known as “AI washing” that has attracted the scrutiny of the U.S. Securities and Exchange Commission.