SEC’s AI Risk Detection Strategies and Machine-Learning Foundation
Dave Bottom, the Securities and Exchange Commission’s (SEC) chief artificial intelligence and chief information officer, has a unique perspective on the evolving technology landscape. Drawing from his experience in geospatial technology and IT services, Bottom sees clear parallels between past challenges and the current potential of artificial intelligence.
Reflecting on his time with the National Geospatial-Intelligence Agency, IBM, and the CIA, Bottom recognizes the importance of addressing fundamental questions surrounding AI. His background equips him well to navigate the complexities of integrating AI into the SEC’s operations.
At the SEC, Bottom embraces AI governance, innovation, talent development, and risk management as key priorities. The agency has a history of leveraging machine learning and is now moving towards more advanced generative AI applications to fulfill its regulatory obligations.
In line with federal guidelines, Bottom published the SEC’s AI compliance plan and is set to release the agency’s use case inventory soon. The use of AI technology has already proven beneficial in managing large volumes of data, such as through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR), enhancing risk analysis and disclosure assessments.
While AI holds the potential to improve market fairness and efficiency, Bottom’s focus remains on internal applications at the SEC. Generative AI pilots are underway, particularly aimed at supporting legal staff in content summarization and query improvements.
Looking ahead, Bottom is optimistic about the impact of AI on SEC operations, particularly in optimizing search capabilities and generating narrative responses. The groundwork laid by the SEC’s cloud environment during the pandemic has positioned Bottom and his team for success in implementing AI initiatives.
As the SEC continues to embrace AI technology, Bottom’s leadership and strategic approach underscore the agency’s commitment to innovation and effective regulation in the ever-evolving financial landscape.
