A US Securities and Exchange Commission committee has proposed a rule requiring public companies to analyze and disclose all material AI efforts, including decisions not to use AI. The controversial proposal allows companies to define AI themselves, raising concerns about inconsistent disclosures and comparability for investors. Legal experts note the rule mirrors earlier SEC cybersecurity requirements and aims to force executives to formally review AI decisions that might otherwise go unexamined. Critics worry the self-definition approach creates loopholes and that resulting disclosures may use boilerplate language with little useful information for investors.
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