Source: University of Miami News

University of Miami School of Law Professor George S. Georgiev discussed artificial intelligence in financial markets with regulators, industry leaders, and academic experts during policy seminars in Brazil and Argentina in September 2026. He presented “The Role and Regulation of Artificial Intelligence in Financial Markets” on 16 September in São Paulo and again on 18 September at the Central Bank of Argentina in Buenos Aires. Each program drew more than 100 government officials and market participants. Georgiev said AI appears most useful in time-intensive work such as document review, company analysis, research, and monitoring for possible misconduct. He distinguished between AI that supports a decision and AI that is given authority to make the decision, saying the oversight burden differs. Georgiev also said evidence is much less convincing that AI consistently produces better investment returns.

He warned that “AI washing” can mislead investors when companies overstate what their AI can do or suggest they use AI when they do not. In his view, such claims raise familiar disclosure and fraud concerns, and the SEC has already brought cases over misleading AI-use claims. He said existing rules against misleading investors, along with investment-advice and supervision requirements, already apply, and FINRA has said its existing rules cover generative AI. Georgiev identified harder questions involving AI agents that take actions, responsibility when systems exceed instructions, and dependence on a small number of cloud or AI providers. He also said AI investment financing could create broader financial-system risks if capital is too abundant, demand develops more slowly than expected, or circular financing links firms together. He said regulators should look across institutional boundaries, use disclosure to reveal commitments and financing links, and understand who ultimately bears the risk if several exposures deteriorate together.