Prof. Matthew Bodie Testifies on Panel for the U.S. Securities and Exchange Commission Investor Advisory Committee

Professor Matthew Bodie, Robins Kaplan Professor of Law, spoke on a panel at the U.S. Securities and Exchange Commission (SEC) Investor Advisory Committee in early March about the implications of the use of artificial intelligence (AI) for corporations in relation to operations and financial disclosures. The panel, titled "Disclosure of Artificial Intelligence’s Impact on Operations" discussed how AI poses a variety of risks and opportunities that companies need to disclose, and how the inconsistency in these disclosures can be problematic for investors seeking clear and comparable information. A recent report on the Harvard Law School Forum on Corporate Governance highlighted that over 60% of S&P 500 companies view AI as a material risk, with concerns spanning across cybersecurity, competition, innovation, regulations, intellectual property, ethical, and reputational risks. However, the way these risks are disclosed varies significantly among industries, making it challenging for investors to assess and compare the risks and opportunities effectively.  This panel included various stakeholders who examined how the SEC can harmonize the AI-related disclosure regime and provide the information that investors are seeking.