U.S. Securities and Exchange Commission chair Gary Gensler said in a speech that he has asked staff to recommend rules governing the use of artificial intelligence to make individually targeted investment recommendations on trading platforms. Such recommendations could constitute a conflict of interest if the AI considers the interests of the platform as well as the investor, he said. (The Logic)

Talking point: Regulators of all kinds are mulling how to adapt to the opportunities and challenges posed by AI. The U.S. Federal Trade Commission opened an investigation last week into whether products and services that incorporate OpenAI’s large language models (LLMs) involve unfair or deceptive privacy or data security practices, according to a document obtained by The Washington Post. AI poses risks to financial stability because individuals might all make similar decisions based on information they’re getting from the same generative models, Gensler said—a problem that will require “new thinking.”