Source: McMillan

The article from McMillan discusses new guidelines issued by the Canadian Securities Administrators (CSA) for non-investment fund reporting issuers on the use of artificial intelligence in capital markets. The guidelines aim to enhance transparency, risk management, and accountability for companies leveraging AI in financial services. Key recommendations include disclosing the use of AI algorithms, ensuring data privacy, and implementing robust risk management practices to prevent market manipulation and bias.

The CSA also emphasizes the importance of explainability in AI systems to enable investors and regulators to understand how AI influences trading decisions. The article highlights potential compliance challenges for Canadian issuers, particularly in balancing innovation with regulatory requirements. Legal experts cited in the article suggest that CSA's guidance may serve as a model for broader AI regulation in finance, reflecting a proactive approach to managing AI risks in capital markets.