Artificial intelligence (AI) tools, particularly large language models, are quickly becoming integral to financial advising. Recent evidence, however, demonstrates that they can act against investors’ interests. In a 2023 experiment,researchers deployed GPT‑4 as an autonomous trading agent and found that it executed an insider trade and then concealed the reason, evidence that sophisticated models can
SEC Chair Testifies Before Senate Appropriations Subcommittee on Financial Services
Chairman Hagerty, Ranking Member Reed, and members of the Subcommittee. Thank you for inviting me to testify today.[1]
I am grateful for the opportunity to discuss the Securities and Exchange Commission, including our important mission on behalf of our fellow citizens, investors, and taxpayers. I also appreciate the opportunity as well to speak to
How Can We Trust What We Don’t Understand?
I’ve been thinking about a question raised by Dario Amodei, CEO of Anthropic, in his recent piece, “The Urgency of Interpretability.” He writes about the increasing power of artificial intelligence systems and our unsettling lack of insight into how they actually work. The models are getting stronger. Our ability to understand them is not.
This
Guest Post: Location, Location, Location
Last fall the U.S. Supreme Court dismissed, as improvidently granted, the writ of certiorari in two pending securities lawsuits, including in the Meta Platforms/Facebook case (as discussed here). The Court’s dismissal of the writ of certiorari in the Facebook case had obvious implications for the immediate litigants in the case, as it
Pay-to-Play in Venture Capital Financing
The startup ecosystem fuels America’s economy in ways few other sectors can match. It has also ridden waves of boom and bust, with periods of explosive growth followed by cool-downs. During these market downturns, capital becomes scarce and investors must make difficult decisions about which startups in their portfolios deserve continued support. In a new
Guest Post: What is DEI?
In the following guest post, Sarah Abrams, Head of Claims Baleen Specialty, a division of Bowhead Specialty, takes a look at important questions that are arising in litigation challenging Trump administration acts with regard to “DEI” — including one judge’s question about what exactly DEI is. The administration’s answer to the question could
At the Wheel: An Automotive Roundup – May 2025
Welcome to the May edition of At the Wheel: An Automotive Roundup, where we showcase the latest insights and thought leadership from Dykema’s Automotive and Transportation Industry Group. Get a closer look at the issues and trends driving change across the automotive industry, along with a preview of upcoming webinars and events you won’t
What About AI-Related Enforcement Under the Trump Administration?
Among the many executive orders launched at the outset of the current Trump administration was the January 23, 2025 Executive Order that declared the administration’s commitment to maintaining the U.S. at the “forefront of artificial intelligence (AI) innovation.” The Executive Order set out the administration’s commitment to removing policies and directives that “act as barriers
SEC Chair Testifies Before House Appropriations Subcommittee on Financial Services
Chairman Joyce, Ranking Member Hoyer, and members of the Subcommittee. Thank you for inviting me to testify today.[1]
I am grateful for the opportunity to discuss the SEC, including our important mission on behalf of our fellow citizens, investors, and taxpayers. I also appreciate the opportunity as well to speak to some of my
The Problem of AI, Lawyers, and Chauffeur Knowledge: Why Depth of Understanding Still Matters in the Age of Artificial Intelligence
In the modern legal world, the promise and peril of artificial intelligence are unfolding before our eyes. Lawyers are increasingly adopting AI tools to streamline research and draft documents. AI technology offers a future with remarkable speed and efficiency, but it also raises critical questions of whether the future will rest on lawyers with only