Even if its past the New Year, it's not too late for firms to update their list of resolutions, and it certainly makes sense to tailor those resolutions to FINRA's list of concerns.

The tone of SIFMA's letter strongly suggests that there is an industry willingness to challenge the DOL in court should it proceed with the proposal in its current form.

This speech is an indication that at least some of the most important bank regulators may be returning their attention to financial risk and away from climate risk (see also ."). That is a positive development, but not yet the norm. To a remarkable extent, bank regulators remain distracted, continuing to focus on climate risk after a year in which there were major bank defaults caused by plain-old-fashioned-boring inflation and interest risk. (See, e.g., .)

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Regulators tend to say nice things about the potential benefits of innovation. The follow up is a "but" where the regulator sets a standard that is either completely ambiguous or impossible. In the case of generative AI, the standard recommended is that humans must "be able to detect possible negative outcomes in deployed AI models or systems. . . ."  

That sounds reasonable. The problem is that AI works in ways that people do not fully understand and cannot fully anticipate. In…